Identify the Main Advantages and Disadvantages of Going Public

question 10

Essay

Identify the main advantages and disadvantages of going public.
A.Advantages - ability to obtain equity capital,enhanced ability to borrow,enhanced ability to raise equity,liquidity and valuation,prestige,personal wealth.
B.Disadvantages - Increased risk of liability,expense,regulation of corporate governance policies and procedures,disclosure of information,pressures to maintain growth pattern,loss of control.

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Definitions:

Employee Involvement

The degree to which employees are encouraged to contribute ideas and participate in decision-making processes within their organization.

Team Norm

Behavioral expectations and standards that are established and shared among team members, guiding their interactions and work.

Verbal Aggression

The act of using spoken words to harm or attack someone either emotionally or psychologically.

High-performance Orientation

An organizational or team focus on achieving high levels of performance and excellence, often through setting challenging goals and standards.