When small companies issue large stock offerings, we can expect owner managers to:
A) increase both leisure time and work related amenities.
B) decrease both leisure time and work related amenities.
C) increase leisure time but decrease work related amenities.
D) decrease leisure time and increase work related amenities.
E) decrease leisure time but keep work related amenities the same.

Question

Quizplus · Accepted Answer

When small companies issue large stock offerings, it often results in a significant influx of capital. This financial boost can afford owner-managers the luxury of delegating responsibilities, which may lead to an increase in both leisure time and work-related amenities. The rationale is that with more resources, owner-managers can afford to improve their work environment while also taking more time off, as they can hire additional help or invest in systems that streamline operations.

When Small Companies Issue Large Stock Offerings, We Can Expect