A Potential Benefit of an Initial Public Offering IPO)

question 39

Short Answer

A potential benefit of an initial public offering IPO):
a. Can increase firm's financial stability.
b. Focus on short-term results.
c. Fiduciary duty.
d. Entrepreneurs' freedom of action.
e. Increased scrutiny by stakeholder groups.

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Definitions:

Geologic Features

Natural formations and structures on the Earth's surface, such as mountains, valleys, and rivers, formed through geological processes.

Institutional Theory

A theory on the deeper and more resilient aspects of social structure, considering the processes by which structures, schemes, rules, norms, and routines become established as authoritative guidelines for social behavior.

Stakeholder Orientation

A business approach that considers the interests and concerns of everyone impacted by the company's activities.

Economic Institutions

Entities or organizations in a society that create, manage, and enforce the rules and policies governing economic activities and transactions.