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Which of the Following Is NOT a Potential Disadvantage Associated

Question 45

Multiple Choice

Which of the following is NOT a potential disadvantage associated with a firm going public?


A) A more liquid market for owners to sell their ownership shares.
B) Because shares are more dispersed,management must work with a more diverse group of stakeholders.
C) The firm faces more rigorous disclosure of its financial situation,and this disclosure requirement has both monetary and time costs.
D) Management needs to more actively manage shareholder expectations and deal with some investors who have a short-term focus on profitability rather than long-term growth.

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