Which of the following would be a disadvantage of a private company going public?
A) Potential loss of ownership and control.
B) Greater disclosure requirements for financial reports.
C) Costs associated with issuing shares.
D) All options are disadvantages.

Question

Quizplus · Accepted Answer

All options listed (A-C) are potential disadvantages of a private company going public. Going public requires a company to meet compliance regulations, such as greater disclosure requirements, which may cause the company to lose control and face costs associated with issuing shares. Therefore, D is the correct choice.

Which of the Following Would Be a Disadvantage of a Private