IPOs Have a Number of Disadvantages

question 12

Multiple Choice

IPOs have a number of disadvantages.These do NOT include:

• A)the expense of conducting the IPO
• B)the dilution of ownership for continuing owners
• C)a greater capacity to remunerate management and employees
• D)the risk of incurring agency costs associated with the separation of ownership and control
• E)a short-term bias to management decision making.

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Definitions:

End Results

The final outcomes or objectives that are aimed for in a business or project management context.

Future Planning

The process of setting goals and developing strategies for achieving them in the future, often involving forecasting and scenario analysis.

Feedforward Controls

Ensure that directions and resources are right before the work begins.

Anticipate Potential Problems

The process of forecasting future challenges or issues that may arise during the course of a project or in the operation of a system, with the aim of mitigating them in advance.