Which of the Following Is Not an Advantage of Going

question 2

Multiple Choice

Which of the following is not an advantage of going public?

• A)It allows a firm's founders to diversify their holdings.
• B)It increases the liquidity of the stock.
• C)It establishes a value for the firm.
• D)It makes it easier to raise new equity capital in the future.
• E)All of the above are advantages of going public.

---

Definitions:

Risk-free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.

Lend

To provide money or resources to another party with the expectation of future repayment.

Borrow

The act of receiving something with the intent to return it, often referring to money in the context of loans where interest may be charged.