Which of the Following Is an Advantage of an Initial

question 17

Multiple Choice

Which of the following is an advantage of an initial public offering (IPO) ?

• A) The legal costs of raising money via a public offering are lesser than that of other ways of raising money.
• B) Management need not invest effort,time,and expense to comply with SEC regulations.
• C) It creates options to acquire other companies with stock rather than cash.
• D) Management becomes more interested in maintaining the price of a company's stock than in running the company.

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Definitions:

Level of Opportunity

A concept referring to the potential for growth and success within a particular market or industry.

Competitive Sales Position

A situation in which a company's product or service competes for preference in a marketplace against other similar offerings.

Account Management Policies

Guidelines and practices designed to manage client accounts effectively and maintain good customer relationships.

Selling and Customer Service Activities

Activities involved in selling a product or service to customers, as well as providing after-sales support to ensure customer satisfaction.