The disadvantages of selling stock to obtain long-term financing include:

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Selling stock to obtain long-term financing may result in a change in management and policies in the company as new shareholders may have different expectations and demands. This can potentially lead to conflicts between the new shareholders and the existing management team, which could have negative effects on the company's overall performance. The other choices are incorrect as paying dividends is not a legal obligation, the funds contributed by stockholders do not have to be repaid, and selling stock does not directly impact the market value of a firm's products.

The Disadvantages of Selling Stock to Obtain Long-Term Financing Include