Which of the following, if true, is most helpful in resolving the diff

QUESTION

Which of the following, if true, is most helpful in resolving the difference of opinion between Brett and Latisha?

A) A prototype of Textmoor’s tablet was displayed recently at a major international technology fair.
B) Most investment banks in the last decade have profited by handling info-tech IPOs.
C) Two other investment banks have offered to collaborate with Olympic Daniels, sharing the risks and profits.
D) By issuing stock, Textmoor agrees to accept tough standards for its management and accounting.
E) Textmoor’s competitors used private investors rather than IPOs to raise money for new products.

ANSWER

Answer: C
Explanation: C) When an IPO seems a good venture for investment firms, it is common for several banks to team up in underwriting the stock, thereby sharing any potential risk. So Choice C is correct: By collaborating with other banks, Olympic Daniels reduces its possible losses if the venture fails. None of the other choices are directly relevant to the issue between Brett and Latisha. The existence of a prototype (Choice A) means little if it has not generated positive reactions from potential buyers. While the stock of pioneer info-tech firms may have advanced (Choice B), their success makes it potentially harder for newcomers to break into the market. When any company issues stock (Choice D), it agrees to abide by stricter business standards. And private investments (Choice E) are a common alternative for all firms to issuing stocks or bonds.