All of the following are disadvantages of going public except:
A) the firm may now become active in mergers and acquisitions.
B) the company must make all information available to the public through filings to the securities commissions.
C) an erosion in value may take place after the initial offering.
D) there is a high cost associated with going public.

Question

Quizplus · Accepted Answer

Becoming active in mergers and acquisitions is not a disadvantage of going public. In fact, going public may provide the funding necessary for a company to engage in mergers and acquisitions. The other options are all true disadvantages of going public.

All of the Following Are Disadvantages of Going Public Except