All of the Following Are Disadvantages of Going Public Except

question 87

Multiple Choice

All of the following are disadvantages of going public except for which one?

• A)The firm may now more easily become active in mergers and acquisitions.
• B)The company must make more information available to the public through filings to the SEC and the state.
• C)An erosion in value may take place after the initial offering.
• D)There is a high cost associated with going public.

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Definitions:

Center of Influence

An individual or entity that has a significant impact on the opinions, behaviors, or decisions of a target group, often used in marketing and sales strategies.

Endless Chain Method

A sales strategy where current customers are asked to refer new clients, theoretically creating a never-ending chain of referrals.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Value Creation

The process by which businesses or entrepreneurs develop new products, services, or processes that are valuable to customers.