Which of the following is an advantage of going public?
A) The firm can more easily become active in mergers and acquisitions.
B) The company is owned by many entities/individuals, making it more diverse.
C) An erosion in value may take place after the initial offering.
D) There is low cost with going public.

Question

Quizplus · Accepted Answer

Going public provides a company with access to public equity markets, which can increase its capital and make it easier to execute mergers and acquisitions. Option B is true, but it's not necessarily an advantage. Option C is a disadvantage, not an advantage. Option D is also false, as there are considerable expenses associated with going public.

Which of the Following Is an Advantage of Going Public