Which of the following is a drawback for a company when it goes public?
A) The company can make or lose a lot of money.
B) The company stock can rise or fall.
C) The company is watched by regulators.
D) The company experiences more media coverage.

Question

Quizplus · Accepted Answer

When a company goes public, it is required to comply with various regulations and reporting requirements set by the Securities and Exchange Commission (SEC) and other regulatory bodies. This can be time-consuming and expensive. Additionally, the company may face increased scrutiny and oversight from investors and analysts, which can limit its flexibility and decision-making abilities. However, options A, B, and D are not necessarily drawbacks but rather potential outcomes of going public.

Which of the Following Is a Drawback for a Company