Global Crafts has made the decision to "go public" through an initial public stock offering (IPO). Global Crafts' executive management undertook this process to
A)reduce capital, reduce debt, improve the balance sheet, and enhance net worth.
B)raise capital, reduce debt, improve the balance sheet, and dissolve net worth.
C)raise capital, reduce debt, improve the balance sheet, and enhance net worth.
D)raise debt, raise capital, improve the balance sheet, and enhance net worth.
E)raise debt, reduce capital, improve the balance sheet, and enhance net worth.

Question

Quizplus · Accepted Answer

Going public through an initial public stock offering (IPO) is a way for a company to raise capital by selling shares to the public. This process can help to reduce debt, improve the balance sheet, and enhance net worth, as stated in option C. Option A, which includes reducing capital, is not a typical goal of an IPO. Option B, which includes dissolving net worth, is not a desired outcome for a company. Options D and E do not accurately describe the goals of an IPO.

Global Crafts Has Made the Decision to "Go Public" Through