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:

Conceptual Framework

An underlying structure in various fields that outlines principles and concepts for systematic study or analysis.

Publicly Traded

A company whose shares are bought and sold on stock exchanges, allowing investors to own a part of the company.

Private Companies

Businesses whose ownership is private and shares are not traded on public stock exchanges.

Measurement Principles

Guidelines that dictate how the economic activities of a company are captured in its financial statements.