The Making Ethical Decisionsbox "Good Finance or Bad Medicine" has an important message formanagers who make financial decisions. Which of the following statements summarizes thismessage?
1. Managers must balance good economic decisions with socially forward thinking.
2. Financial decisions must be based on what insurance companies are willing to pay.
3. Checking academic credentials of recently graduated doctors is imperative due to the costof lawsuits that patients may file if they learn that they were served by a surgeon without alicense.
4. The support of a good law firm is worth every penny a hospital might pay. The financemanager should always budget for a legal team.

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.