Which of the following is generally NOT true and an advantage of going public? A) Facilitates stockholder diversification. B) Increases the liquidity of the firm's stock. C) Makes it easier to obtain new equity capital. D) Establishes a market value for the firm. E) Makes it easier for owner-managers to engage in profitable self- dealings.

Question

Quizplus · Accepted Answer

Going public typically subjects a company to greater scrutiny and regulatory oversight, making it harder, not easier, for owner-managers to engage in self-dealings.

Which of the Following Is Generally NOT True and an Advantage