? Which of the following statements is NOT CORRECT?
A. ?When a corporation's shares are owned by a few individuals and are not traded on public markets, we say that the firm is "closely, or privately, held."
B. ?"Going public" establishes a firm's true intrinsic value, and it also insures that a highly 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. ?Publicly owned companies have shares owned by investors who are not associated with management, and public companies must register with and report to a regulatory agency such as the SEC.
E. ?It is possible for a firm to go public and yet not raise any additional new capital at the time.
Answer: B
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When one company purchases less than 50% of equity securities in a second company, which of the following statements is true?
a. The purchaser is referred to as the parent. b. The purchaser is referred to as the subsidiary. c. The company whose securities are purchased is the subsidiary. d. The company whose securities are purchased is the investee.
One of the follower characteristics in path-goal theory is perception of one’s own ability. As perception of ability goes up, directive leadership should go down. Why is this? And what is the effect on the follower if directive leadership continues to be used?
What will be an ideal response?
The doctrine that places a duty on a nonbreaching party to take reasonable steps to reduce
damages is called: A) Liquidation. B) Mitigation. C) Reciprocal duties. D) Avoidance. E) Garnishment.
Relying on executive judgment for forecasting may be adequate when
A. levels of marketing efforts put forth by competitors vary considerably. B. recent events give the executive specific impressions of product demand. C. product demand is erratic. D. the executive conducts surveys. E. the executive has considerable experience and product demand is relatively stable.