Which of the Following Is NOT a Benefit of Going

question 80

Multiple Choice

Which of the following is NOT a benefit of going public for a private firm?

• A) New capital for the company.
• B) Publicly traded stock for acquisitions
• C) Personal wealth and liquidity
• D) Low managerial cost in issuing the IPO.

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and stockholders' equity at a specific point in time.

Amortized Cost

Amortized cost refers to the adjusted value of an asset or a debt over a specific period of time, taking into account any related expenses or reductions.

Amortized Cost

A financial term referring to the gradual reduction of a debt over a period of time through regular payments covering both principal and interest.

Return On Total Assets

A financial ratio that measures the profitability of a company by calculating how effectively a company uses its total assets to generate profit.