An Advantage of a Private Company Becoming a Public Company

question 15

Multiple Choice

An advantage of a private company becoming a public company is:

• A)Separation of ownership and control
• B)Increased disclosure
• C)The opportunity costs of underpricing a share offer
• D)The potential to reduce the cost of equity

---

Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

Receptor Site

A specific location on a cell membrane or within a cell where molecules such as hormones, neurotransmitters, or drugs can bind to elicit a physiological response.

Excitatory

Referring to signals or substances that increase the likelihood of a neuron firing an action potential.