A Disadvantage of Going Public Is the

question 102

Multiple Choice

A disadvantage of going public is the

• A)declining interest in the stock price necessary to run the business.
• B)absence of interest in capital gains in favor of focus on the company.
• C)creation of a long-term relationship with nonbeneficial banking institutions.
• D)pursuit of otherwise unaffordable opportunities, which can lead to overextension.
• E)increase in the amount of company debt as a result of third-party stock sales.

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Definitions:

Statistically Significant

A determination in statistical analysis that an observed difference or relationship is unlikely to have occurred by chance.

Sample Average

The arithmetic mean of a set of numerical values, calculated by adding them together and dividing by the number of samples.

Skewed Distribution

A statistical term describing a distribution that is not symmetrical and has a long tail on one side of the peak.

Population Average

The mean value of a particular characteristic or measurement across an entire population.