Advantages of a Company Going Public Include All of the Following

question 51

Multiple Choice

Advantages of a company going public include all of the following, EXCEPT that

• A) publicly traded stock provides valuable signaling information concerning the health of the company.
• B) the original investors and the management team would like liquidity.
• C) it is easier to use public stock as currency to acquire other companies.
• D) it might need more capital in order to finance growth.
• E) management must answer to outside shareholders.

---

Definitions:

Urbanization

is the process by which cities grow and societies become more urban in character, often characterized by a decrease in rural population and an increase in urban living.

Economic Inequality

The unequal distribution of wealth, income, and economic resources among individuals, households, or communities within a society or globally.

Suicide Victim

An individual who has died as a result of intentionally ending their own life.

Typical Reaction

The common or expected response that people have to a particular situation or stimulus.