Drawbacks of selling stock as a source of funds include
A) enhanced corporate image.
B) loss of voting control of the company.
C) future financing.
D) estate planning.

Question

Quizplus · Accepted Answer

Selling stock means selling ownership in the company, which means loss of voting control. Enhanced corporate image, future financing, and estate planning are not drawbacks of selling stock, but rather potential benefits or separate considerations.

Drawbacks of Selling Stock as a Source of Funds Include