Why Do Most Private Companies Become Public Companies
Why do most private companies become public companies?
A) to diversify the shareholders
B) to raise extra money
C) to gain more exposure
D) so the owners can get out of the business
What is the term for when a public company becomes a private corporation?
A) share buyback
B) private placement
C) leveraged buyout
D) hostile takeover
What is one of the biggest concerns for the original owners when a company goes public?
A) more shareholders
B) less profits
C) financial information becoming public
D) loss of control
A corporation can best be described by which of the following statements?
A) It cannot sue or be sued.
B) It ends when the owner of the corporation charter dies.
C) It does not have a life separate from its owners.
D) It does not have a size limitation.