What Are Disadvantages of Issuing Public Stock

question 24

Multiple Choice

What are disadvantages of issuing public stock?

• A)It makes the firm subject to greater
• B)regulation by the state in which the firm operates.
• C)Not having to comply with the laws of the Security Exchange Commission.
• D)The small business owner lacks sufficient knowledge of the securities market, and the naive small business person may enter into contracts with brokers that may not be in the best interest of the business.
• E)Having to comply with the laws of the Security Exchange Commission.
• F) Participating partners must be able to share in the revenues.

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Definitions:

Social Class

A division of society based on social and economic status.

Headstone

A grave marker placed at the head of a grave, typically inscribed with the deceased's name, dates of birth and death, and sometimes a personal message or prayer.

Religious Tradition

A set of deeply held beliefs, values, customs, and practices that are shared within a religion, passed down through generations.

Bury

The act of placing a dead body into the ground, a tomb, or the sea, traditionally as a means of disposing of the remains.