Which of the Following Statements Is NOT True

question 59

Multiple Choice

Which of the following statements is NOT true?

• A) For firms that have limited access to the public capital markets, the cheapest source of external funding is often the private markets.
• B) Bootstrapping and venture capital financing are not part of the private market.
• C) The biggest drawback of private placements involves restrictions on the resale of the securities.
• D) Many private companies that are owned by entrepreneurs, families, or family foundations and are sizable companies of high credit quality prefer to sell their securities in the private markets.

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Definitions:

Standard Deviation

An indicator of the range or spread of values in a dataset, showing how much they diverge from the average value.

Forging Process

A manufacturing procedure where metal is shaped by localized compressive forces, often through hammering or pressing.

Lower Control Limit

The lowest value on a control chart that signals the process variation if the data falls below it.

Compressive Strength

Compressive strength is a measure of the ability of a material to withstand loads tending to reduce size, typically expressed in pounds per square inch (psi) or mega pascals (MPa).