Which of the Following Is an Advantage of Being a Public

question 24

Multiple Choice

Which of the following is an advantage of being a public company?

• A) Focus on short-term profits and performance results
• B) Access to long-term capital
• C) Guaranteed operating confidentiality
• D) Unsusceptibility to the risk of insider trading

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Definitions:

Cost Of Merchandise Sold

This is the total cost incurred to produce or acquire the goods sold by a company during a specific period.

Debit Balance

An account balance that occurs when the total amount of debits exceeds the total amount of credits in an account.

Accounts Payable

A liability account on the balance sheet, representing the company's obligation to pay off a short-term debt to its creditors or suppliers.

Sales Tax Payable

The amount of sales tax collected from customers that a business owes to the government.