The Cost of Meeting SEC and Possibly Additional State Reporting

question 3

True/False

The cost of meeting SEC and possibly additional state reporting requirements regarding disclosure of financial information, the danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.

---

Definitions:

Nonverbal Information

Communication that occurs without words, through gestures, facial expressions, body language, and other visual cues.

Communication Model

A framework describing how information is transmitted and received between communicators, emphasizing components like sender, message, medium, receiver, and feedback.

Encoded

The process by which information is converted into a format that can be comprehended and used by a system or individual.

Communication Styles

The characteristic ways in which individuals express themselves and interact with others through spoken, written, or non-verbal means.