Which of the following characteristics is not a disadvantage of being a publicly traded company?
A) Compliance costs because of various public disclosure requirements.
B) Prestige is helpful in bank negotiations, executive recruitment and the marketing of products.
C) Company must make all information available to the public through SEC and State filings.
D) Tremendous pressure for short-term performance placed on the firm by analysts and large institutional investors.

Question

Quizplus · Accepted Answer

All of the other options listed are considered disadvantages of being a publicly traded company. Compliance costs can be a burden, disclosure requirements can limit privacy, and pressure for short-term performance can be detrimental to long-term success. However, being a publicly traded company can bring prestige and credibility which can be helpful in various situations including bank negotiations, executive recruitment, and marketing products.

Which of the Following Characteristics Is Not a Disadvantage of Being