Which of the Following Statements Is NOT True

question 4

Multiple Choice

Which of the following statements is NOT true?

• A)When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held."
• B)"Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
• C)When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
• D)It is possible for a firm to go public and yet not raise any additional new capital.

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready to be sold but haven't been yet.

Direct Cost

A cost that can be easily and conveniently traced to a specified cost object.

Packaging

The process and materials used to protect, transport, and present goods for sale.

Leasing A Machine

Leasing a machine entails entering into a rental agreement to use a piece of equipment for a specified period in exchange for regular payments, without purchasing it outright.