When a start-up company meets with success and the entrepreneur needs to achieve economies of scale, it would not make economic sense to consider an IPO.

Question

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When a start-up company meets with success and needs to achieve economies of scale, it may consider going public through an initial public offering (IPO) to raise capital and increase visibility. This can help the company to access large amounts of capital and grow faster than it would be able to through private investment alone. However, whether or not an IPO makes economic sense for a particular company depends on a variety of factors, including market conditions, the company's financial health and growth prospects, and the costs and potential benefits of going public.

When a Start-Up Company Meets with Success and the Entrepreneur