What Is an Advantage to a Small Business in Listing

question 15

Multiple Choice

What is an advantage to a small business in listing on the stock exchange?

• A) Increasing the competitive information that will be made available to it.
• B) Being taken over by a larger business during a period of low sales and profits.
• C) The guarantee of an immediate increase in earnings to initial owners through the inflow of cash from the initial share offering.
• D) The opportunity to raise its profile and thus improving its chances in attracting better strategic partnerships and financing opportunities.
• E) The significant cost reductions available for future debt and equity financing.

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Definitions:

Dollar-Denominated Assets

Financial assets such as bonds, stocks, or bank deposits that are measured in U.S. dollars.

Foreign Investment

Foreign investment involves capital flows from one country to another, granting the investor ownership stakes in foreign companies or assets, aiming for future returns on the investments.

Creditors

Individuals or institutions that lend money or extend credit, expecting to be repaid, usually with interest.

Great Recession

A severe global economic downturn that occurred from late 2007 through mid-2009, marked by significant declines in GDP, high unemployment, and financial instability.