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.

---

Definitions:

Confidentiality

The ethical principle or legal right that a physician or other professional will not disclose information about a client or patient to others without the individual's consent.

Addendum

An additional document appended to a contract, agreement, or other document, containing supplementary information or modifications.

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.

Unanimity

Complete agreement among all members or parties involved on a particular issue or decision.