All of the Following Are Disadvantages of Going Public Except

question 113

Multiple Choice

All of the following are disadvantages of going public except

• A) the firm may now become active in mergers and acquisitions.
• B) the company must make all information available to the public through filings to the SEC and the state.
• C) an erosion in value may take place after the initial offering.
• D) there is a high cost associated with going public.

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Definitions:

Hyperinflation

An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's value.

Deflation

A decrease in the general price level of goods and services, often characterized by the increase in the value of money.

Disinflation

Disinflation is the process of slowing down the rate of inflation, indicating a reduction in the speed at which the general level of prices for goods and services is rising.

Wage-Price Spiral

A macroeconomic concept describing a situation where rising wages lead to increased prices, which in turn lead to demands for higher wages, thus perpetuating inflation.