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A Disadvantage of Going Public Is the

Question 78

Multiple Choice

A disadvantage of going public is the


A) declining interest in the stock price necessary to run the business.
B) absence of interest in capital gains in favor of focus on the company.
C) creation of a long-term relationship with nonbeneficial banking institutions.
D) pursuit of otherwise unaffordable opportunities, which can lead to overextension.
E) increase in the amount of company debt as a result of third-party stock sales.

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