Which of the following is considered an advantage (for the corporation)of going public?
A) The president becomes a public relations man.
B) Extensive and time-consuming reporting requirements.
C) Access to large amounts of capital.
D) Low cost of going public.

Question

Quizplus · Accepted Answer

Going public provides a corporation with access to large amounts of capital through the sale of shares to the public. This can be an advantage for the corporation as it can use the funds to expand its operations, make acquisitions, or repay debt. However, going public also comes with drawbacks such as extensive reporting requirements and the need to satisfy shareholders' expectations, which can be costly and time-consuming. A is incorrect as the president's role may not necessarily change with the decision to go public. B is incorrect as reporting requirements are considered a disadvantage. D is incorrect as the costs of going public can be quite high, including fees for underwriters, lawyers, and accountants.

Which of the Following Is Considered an Advantage (For the Corporation)of