Which of the following statements is incorrect?
a. A stock is a certificate representing partial ownership in a corporation.
b. Like debt securities, common stock is issued by firms to obtain funds.
c. Stocks are issued by corporations to raise short-term funds.
d. The secondary stock market enables investors to sell stocks that they had previously purchased.
Answer: c. Stocks are issued by corporations to raise short-term funds.
You might also like to view...
Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to
A. ISO 9000. B. restructuring. C. reduced cycle time. D. the RATER system. E. statistical process control.
What evidence may a company offer in defense to allegations of an antitrust violation under the rule of reason standard?
A. If the company violates the standard, there is no defense. B. There was no economic harm to the consumer. C. Its actions were justified and necessary under the economic conditions. D. The anticompetitive harm was not harmful to the government.
________ aims to convince current purchasers that they made the right choice
A) Persuasive advertising B) Informational advertising C) Reinforcement advertising D) Reminder advertising E) Comparative advertising
A major disadvantage of independent retailing is the _____
a. limitation in bargaining power b. latitude in selecting customer markets c. high investment requirements d. inflexibility in developing strategy