Question

X Company is preparing its IPO prospectus and is informed by its attorneys that the company needs to discuss the board's role in risk oversight ad enterprise risk management. This discuss would be best placed within the section of the prospectus known as: a. The Box Summary section b. The Risk Factors section c. The Management section d. The Use of Proceeds section

Answer 1

This discuss would be best placed within the section of the prospectus known as: c. the management section.

Step-by-step explanation:

Management is the process of the administration of the organization or a business. The management section in the organization describes the structures of the team, resources and work procedure. The management section is responsible for planning the enterprise risk management.

In the above scenario, X company was preparing its IPO prospectus. Attorneys informed that company should discuss the board's role in risk oversight and enterprise risk management. The management section is responsible for preparing the prospectus.