QUESTION 20 Which of the following statements is false: The private company's primary goal is to increase cash ow and generate a favorable return on investment for its owners. Market share is the percentage of demand that a company captures within a defined market area. Growth through diversification reduces a company's risk because they are spreading out over several markets. IPO involves private sale of a company's stocks to investment banking firms. QUIZDI IUN 13 Which of the following statements is false: Franchisees must pay a monthly franchise royalty fee to the franchisor, which is calculated as a percentage of sales volume. Management contracts are available primarily to food service companies. The franchisor also charges the franchisee for ancillary services such as marketing, training, frequent guest programs, hotel reservations, and purchasing fees. Acquisitions can be funded by debt, existing equity, selling new shares of stock to raise new capital, or using stock as barter to acquire the company for sale