A potential benefit of an initial public offering (IPO) is that it:

Question

Quizplus · Accepted Answer

An IPO can provide a company with a significant amount of capital through the sale of shares, which can then be used to fund growth and expansion. This increased financial stability can benefit the company in the long term. Option B is incorrect because an IPO generally focuses on long-term growth and stability rather than short-term results. Option C is partially correct, as an IPO does lead to increased scrutiny from stakeholders, but this scrutiny can also be seen as a potential disadvantage depending on the perspective of the company. Option D is incorrect because an IPO can actually decrease an entrepreneur's freedom of action as they must answer to shareholders and make decisions in the best interest of the company as a whole.

A Potential Benefit of an Initial Public Offering (IPO) Is