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:

Neutral Object

An item or entity that does not inherently carry positive or negative connotations or provoke strong emotions.

Mere Exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Neutral Attitude

A viewpoint or stance where an individual does not express a strong opinion or favoritism towards any side of an issue.

Decision Making

Refers to the process involved in choosing among different options or actions, often involving considerations of risk and reward.