All of the Following Disadvantages Are Associated with IPOs Except

question 22

Multiple Choice

All of the following disadvantages are associated with IPOs except ____. ​

• A)high cost
• B)being very time-consuming
• C)public scrutiny
• D)loss of control
• E)pressure to perform in the long term

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Definitions:

Economies of Scale

Economies of scale are cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases with the reduction in average costs.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Capital

Resources made and used by humans to produce goods and services, including buildings, machinery, and equipment.