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 must disseminate more information to the public on corporate affairs.

Question

Quizplus · Accepted Answer

Option D is not an advantage but rather a requirement or consequence of going public. Public companies are obligated to disclose more information about their operations, financials, and risks, which can be seen as a disadvantage due to the costs and efforts involved in maintaining transparency and compliance with regulatory requirements.

All of the Following Are Advantages of Going Public EXCEPT