After Going Public, the Founders of an IPO Firm Generally

question 170

Multiple Choice

After going public, the founders of an IPO firm generally find that all except ________ happens.

• A) They dilute their ownership.
• B) They often become minority owners.
• C) They leave the company and start a new firm.
• D) They accept accountability for their actions to independent outside shareholders.

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Definitions:

Economic Value

The worth of a good or service determined by the market or its impact on an entity's financial condition.

Utility

The extent to which something provides economic value greater than its cost.

Practicality

The aspect of being sensible, realistic, and focused on what is achievable and efficient in real-world situations.

Educational Background

Refers to the formal schooling, degrees, and certifications completed by an individual.