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:

First Slice

The initial allocation or offering of a resource, opportunity, or product, indicating priority or privilege in its reception.

Second Slice

Implies a subsequent option or opportunity, often discussing additional choices available after an initial selection has been made.

MR>MC

A condition where marginal revenue (MR) exceeds marginal costs (MC), indicating a potential profit increase if production is expanded.

Increase Production

A process of ramping up the quantity of goods produced, often in response to higher demand or to achieve economies of scale.