A Reason Why Many Entrepreneurs Prefer to Avoid Going Public

question 15

Multiple Choice

A reason why many entrepreneurs prefer to avoid going public is that they

• A)lack the needed skill.
• B)don't have sufficient information.
• C)feel they would lose control.
• D)wish to raise more capital.
• E)are restricted by the government.

---

Definitions:

4-Year Bond

A debt security that matures in four years from the issuance date.

Forward Rate

An interest rate agreed today for a loan to be made or a bond to be purchased at a future date.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount from its face value and pays its full face value at maturity.

Purchase Price

The amount of money paid to acquire a good or service.