The Drawbacks of Going Public Include All But

question 88

Multiple Choice

The drawbacks of going public include all but:

• A) financial costs of an IPO such as printing, accounting and legal costs and the underwriter's discount.
• B) managerial costs of an IPO such as new time constraints upon top executives
• C) the emphasis by the new owners upon the firm's stock price.
• D) life in a fishbowl in the sense that certain information about the firm's internal affairs must now be released to the public.
• E) all of the above are potential drawbacks to going public

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Definitions:

Chattel Mortgage

A loan arrangement in which an item of movable personal property acts as security for a loan, with the lender holding an interest in the property until the loan is repaid.

Bill Of Sale

A legal document that transfers ownership of personal property from the seller to the buyer.

Assignment Of Book Debts

The transfer of the right to collect debts owed to a business, usually as security for a loan.

Conditional Sale Agreement

A contract for the sale of goods where the purchase price is paid in installments and the seller retains ownership of the goods until full payment is received.