Which of the Following Is NOT Generally Considered a Cost

question 8

Multiple Choice

Which of the following is NOT generally considered a cost of going public?

• A)Agency Costs of Managerial Discretion: Separating ownership and control leads to such costs, though they can be mitigated with monitoring, incentive contracting, etc.
• B)Information Asymmetry: Disclosure requirements may compromise the firm's strategic position in the industry.
• C)Taxes: Public firms face higher federal and state tax rates than private firms.
• D)Performance Pressures: Management will face pressure for performance from investors, the financial press, equity research analysts, and bond rating agencies.
• E)Distractions: Management is often distracted by time-consuming investor-relations tasks, such as press releases, personal visits from or to major shareholders, etc.

---

Definitions:

Solo

Refers to an individual performing or working alone, without a partner or group.

Survival

The act of continuing to live or exist, especially in spite of challenging conditions.

Success-Disengagement

The concept of an individual or entity achieving their predetermined goals and subsequently stepping back or reducing their active involvement.

Resource Maturity

A metric or stage indicating the level of development and readiness for use of a particular resource within an organization or project.