Preparing a public offering involves ________
A) issuing corporate bonds to the employees of the firm
B) hiring a public accounting firm to serve as auditor
C) hiring a private company as a proxy firm
D) raising $1 million as a security deposit to the SEC
E) engaging in collective bargaining with the employees
Answer: B
Explanation: Preparing an offering involves assembling a team of advisors that includes legal experts, a public accounting firm to serve as auditor, and an underwriter, a specialized type of bank known as an investment bank, that buys the shares from the company and sells them to investors.
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Indicate whether the statement is true or false
Olympics Inc knows that Ray-Duke Construction is on the edge of possible bankruptcy and desperately needs money to meet its payroll next week. Olympics owes Ray-Duke $100,000 for construction work
Olympics says to Ray-Duke, Take $50,000 in full settlement or sue us. It will be two years before you get a judgement in court." Ray-Duke accepts because it can't wait two years. What remedy, if any, does Ray-Duke have to get the other half of the money from Olympics? A) Misrepresentation. B) Undue influence C) Non est factum D) Economic duress E) Ray-Duke has no remedy.