Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A) After the IPO, there is a less active secondary market for the firm's shares.
• B) Only smaller amounts of capital can be raised through an IPO than the amount that can be raised through private sources.
• C) Publicly traded firms find it easier to attract top management talent.
• D) Going public can enable an entrepreneur to fund a growing business but not without giving up control.

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Definitions:

Close Substitutes

Products or services that can easily replace one another in the eyes of consumers, leading to competitive market dynamics.

Positive Profits

Positive profits occur when a business's total revenues exceed its total costs, indicating financial gain from its operations.

Long Run

Refers to a period where all factors of production and costs can be variable, allowing firms to adjust to changes in the business environment fully.

Short Run

A period in which at least one factor of production is fixed, allowing limited adjustments to changes in production or the business environment.