What Is a Disadvantage to Many Small Businesses in Listing

question 34

Multiple Choice

What is a disadvantage to many small businesses in listing on the stock exchange?

• A) Pressure to take on short term investments to yield shareholders immediate profits.
• B) Increased income taxes and capital gains tax rates on earnings.
• C) Increased public scrutiny of its business and financial processes.
• D) Increased regulations around product quality, consistency and distribution.
• E) Decreased flexibility in financing future projects through informal sources of capital.

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Definitions:

Annual Salary

The total amount of money that an individual earns in one year from their job before taxes and other deductions.

Sampling Distribution

The distribution of a statistic (such as the mean or variance) derived from a large number of samples of a specific size from a particular population.

Sample Proportion

The ratio of members in a sample exhibiting a particular attribute to the total sample size, often expressed as a percentage.

Standard Deviation

An indicator of the degree of spread or divergence from the average in a collection of data, showing the extent to which the data points vary from their average value.