sally rubber co. recently raised capital through an initial public offering. Its stock can now be purchased on the NYSE. This company is referred to as:

A. a publicly owned corporation

B. a closely held corporation

WAC Inc. is going public and issuing500,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in theWAC IPO. The following table shows the number of shares requested by potential investors in each row.

Bids Number of shares requested Price per share

Bidder#1 50,000 $59

Bidder#2 100,000 $57

Bidder#3 150,000 $55

Bidder#4 200,000$53

Bidder#5 250,000 $51

Bidder#6 300,000$49

What should be the firm's IPO offer price?

$54

$52

$55

$53

Which of the following best exemplifies the trend toward a renewed focus on corporate governance?

A. Steps have been taken to enhance the interaction between shareholders and company managers so that managers work toward achieving the primary goal: maximizing shareholder wealth.

B. American retailers can import sporting goods and apparel from countries with low-cost production.

C. The risks of starting a new business and investing in new products are lowered as a result of better systems and processes, which help professionals make better choices.