A search of the county records would always show a valid recorded

The government regulates financial markets for two main reasons:

A) to ensure soundness of the financial system and to increase the information available to investors. B) to improve control of monetary policy and to increase the information available to investors. C) to ensure that financial intermediaries do not earn more than the normal rate of return and to improve control of monetary policy. D) to ensure soundness of financial intermediaries and to prevent financial intermediaries from earning less than the normal rate of return.

Which of the following statements is false?

A) New corporations often start with a few investors and then seek additional funding as their original ideas are shown to be profitable. B) Groups of investors called venture capitalists provide financial support for new corporations. C) If the early life of the company is successful, the company may have an initial public offering (IPO). D) The IPO may be managed by an underwriting firm and shares will be sold to individual and institutional investors. E) The accounting procedures used by a company will vary significantly based upon the stage of the company's growth cycle.