Advantages to going public with a firm include all but WHICH of the following?
A)The ability for management to offer stock options as a recruiting tool for key employees.
B)A greater ability for the firm to raise capital.
C)A more liquid market for owners to sell their ownership shares.This liquidity typically leads to higher prices.
D)An overall decreased public awareness of the firm.

Question

Quizplus · Accepted Answer

Going public with a firm typically increases public awareness of the firm, as it is required to disclose financial information and other key details. This increased public awareness can be seen as both an advantage and a disadvantage, but it does not represent an advantage to NOT going public. Therefore, option D is the correct choice as it is the only option that is not an advantage to going public. A, B, and C are all advantages of going public.

Advantages to Going Public with a Firm Include All but WHICH