All of the Following Are Advantages of Going Public Except

question 2

Multiple Choice

All of the following are advantages of going public except

• A) more funds are available to publicly-traded firms.
• B) the fact that a company is public helps in bank negotiations and marketing.
• C) publicly-traded stocks afford the stockholders more liquidity.
• D) the firm disseminates more information to the public on corporate affairs.

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Definitions:

Creditor Beneficiary

A third party that benefits from a contract in which the promisor agrees to pay the promisee's debt to the beneficiary.

Donee Beneficiary

A third party who benefits from a contract between two other parties, where the intent is to gift the benefit to the third party.

Third-Party

An entity that is involved in a transaction or legal matter indirectly, separate from the two principal parties directly involved.

Promise

An assurance given by one party to another agreeing to do or not do something in the future.