A Disadvantage of Going Public Is The

question 72

Multiple Choice

A disadvantage of going public is the:

• A) loss of interest in the stock price necessary to run the business.
• B) absence of interest in capital gains.
• C) creation of a long-term relationship with non-beneficial banking institutions.
• D) pursuit otherwise unaffordable opportunities.
• E) rising debt.

---

Definitions:

Dollar Value

The worth of an item, service, or amount of money expressed in terms of the United States dollar currency.

Federal Income Tax

A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

National Sales Tax

A tax imposed by the government on sales of goods and services, collected at the point of sale and paid by the final consumer.

Efficiency

The degree to which resources are used optimally to produce goods and services, minimizing waste and maximizing output.