Which of the Following Is NOT a Reason Why an IPO

question 24

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 its 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:

Heavy Drinking

The consumption of alcohol in amounts that are harmful to health.

Wine-Drinking Countries

Nations where wine consumption is a significant part of the culture and diet, often associated with certain health benefits.

Beer-Drinking Countries

Nations where consumption of beer is a significant part of the culture and may have high per capita beer consumption rates.

Distilled Beverages

Alcoholic drinks produced by distilling fermented grain, fruit, or vegetables, which include vodka, whiskey, rum, and gin.