Disadvantages of a Company Going Public Include All of the Following

question 54

Multiple Choice

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

• A) there are direct costs associated with compliance.
• B) management may have to disclose more of its strategy.
• C) publicly traded stock provides valuable signaling information.
• D) management will spend significant time meeting with analysts.
• E) management must answer to outside shareholders.

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Definitions:

NCRMD

Stands for Not Criminally Responsible on account of Mental Disorder, a legal defense in some jurisdictions for individuals who commit crimes but are found to be mentally ill at the time.

Criminal Offences

Acts that are punishable under criminal law, including both minor offenses and serious crimes.

Self-Determination

The principle that individuals have the right to control their lives and make their own decisions without undue influence from external forces.

Principle Of Autonomy

The ethical principle that recognizes an individual's right to make their own choices and decisions without coercion.