All of the Following Disadvantages Are Associated with Being a Public

question 18

Multiple Choice

All of the following disadvantages are associated with being a public company EXCEPT

• A) high cost.
• B) being subject to stringent disclosure rules.
• C) public scrutiny.
• D) loss of control.
• E) pressure to perform in the long term.

---

Definitions:

Price Elasticity

Price elasticity measures how much the quantity demanded of a good responds to a change in its price, indicating how changes in price influence consumer purchasing behavior.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.

Inelastic Demand

A situation where the demand for a good or service is relatively unresponsive to changes in price.

Total Revenue

The total income received by a firm from sales of its products or services.