Differences in share$-$ownership patterns can have a significant effect on both the firm's sources of financial capital and its financial performance and riskiness. It will also affect the oversight given to the firm's managers. For example, if corporations with open ownership structures require additional financing, it will most likely come from either borrowing additional funds, reinvesting retained profits, or from the sale of additional shares.

If new equity funds are used and new shares are sold, then the ownership positions of the existing shareholders will be these existing shareholders purchase a proportional quantity of the additional shares. The open structure also implies that the performance of the firm's managers will also be subject to $-,$ unless scrutiny by those individuals and institutions who are existing and potential shareholders.

International firms must effectively manage several additional phenomena and complexities that are not explicitly applicable to purely domestic companies. Based on your understanding of the differences between purely domestic businesses and international companies, evaluate whether the following statement is true or false: