Which of the Following Should Not Be Considered a Benefit

question 39

Multiple Choice

Which of the following should not be considered a benefit to a firm that is issuing an IPO?

• A) access to additional capital
• B) provide an alternative to cash for future acquisitions
• C) have another source,other than cash for executive compensation
• D) limits the founder's ownership dilution

---

Definitions:

Depression

A psychiatric condition marked by a constant state of low mood or a lack of enjoyment in activities, which considerably disrupts daily functioning.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Construct Validity

Evidence that a test measures a specific concept or trait. Construct validity includes an analysis of a test through one or more of the following methods: experimental design, factor analysis, convergence with other instruments, and/or discrimination with other measures.