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:

Chronic Inflammation

A long-term and often persistent inflammatory response where the body continually attempts to fight perceived internal threats, which can lead to various diseases and health issues.

Arthritis

Arthritis is an umbrella term for conditions that cause inflammation and pain in one or more joints.

Osteoporosis

A condition characterized by weakened bones that are more prone to fracture, typically due to loss of bone density and mass.

Rheumatoid Arthritis

A chronic inflammatory disorder affecting many joints, including those in the hands and feet, characterized by joint pain, swelling, and stiffness.