Which of the Following Is NOT a Reason Why an IPO

question 28

Multiple Choice

Which of the following is NOT a reason why an IPO is attractive to the managers of a private company?

• A)It gives their private equity investors the opportunity to diversify.
• B)It gives access to large amounts of capital in the IPO.
• C)It reduces the complexity of requirements regulating the company's management.
• D)It gives access to much larger amounts of capital through the public markets in subsequent offerings.

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Definitions:

Affiliation

The need or desire to build relationships or be part of a group.

Achievement

A term that denotes the successful accomplishment or attainment of goals, often used in educational, professional, or personal contexts.

Community

A group of people living in the same place or having a particular characteristic in common, often sharing a sense of belonging and mutual support.

Culture of Honor

A social concept where respect, pride, and reputation become powerful motivating forces, often resulting in aggressive responses to perceived insults or threats.