Answer:
B
Explanation:
Even if a firm goes public, its stock might still be overvalued or undervalued - the firm's value might diverge from its intrinsic value. Intrinsic value is value based on a firm's fundamentals. Going public doesn't guarantee that the firms value would merge with its intrinsic value
A privately held firm is a firm whose shares are not publicly offered. It is not listed on the stock exchange. When a private firm decides to go public for the first time, the transaction is called an initial public offering
Answer: The correct answer is "B. underwrite".
Explanation: Investment bankers <u>underwrite</u> new issues of bonds or stocks by purchasing, at a discount, the entire stock or bond issue of a firm and selling the issue to interested investors at a higher price.
In this way, investment banks generate their profit, acting as a financial intermediary.
Answer: Option (A) is correct.
Explanation:
General Partnership : It refers to the partnership in which two or more persons agree to share all of the company's assets, profits and all types of liabilities such as financial and legal liability.
Also, these types of partners agree to unlimited liability means that their personal are liable for any of the partnership's commitment.
