Which One of These Was Most Cited by CFOs as the Motive

question 38

Multiple Choice

Which one of these was most cited by CFOs as the motive for going public?

• A)Creating public shares for use in future acquisitions
• B)Allowing the firm's principals to diversify their holdings
• C)Establishing a market value for the firm
• D)Minimizing the firm's cost of capital
• E)Allowing venture capitalists to cash out

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Definitions:

Indifference Curve

A graphical representation used in microeconomics to show combinations of goods among which a consumer is indifferent, reflecting their preferences.

Consumer Equilibrium

The point at which an individual consumer achieves the highest level of satisfaction, given their income constraints and the prices of goods and services.

Total Utility

The overall satisfaction or happiness a consumer receives from consuming a particular quantity of goods and services.

Consumer Equilibrium

A state where a consumer has allocated their income in a way that maximizes their utility, given their budget constraints.