A Drawback to "Going Public" Is

question 67

Multiple Choice

A drawback to "going public" is:

• A)large profit potential resulting in increased taxation.
• B)numerous regulatory requirements.
• C)national recognition causing increased exposure.
• D)additional working capital.

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Definitions:

Holding Cost

The expense associated with storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

In-Transit Inventory Cost

The expenses associated with moving goods from point of origin to their destination, including the cost of transportation and the opportunity cost of the inventory being unavailable during transit.

Vidalia Onions

Vidalia Onions are a variety of sweet onions grown exclusively in a designated area of Georgia, USA, known for their mild flavor.

Safety Inventory

Extra stock that is kept on hand to protect against variability in demand or supply and to ensure that production processes can continue smoothly.