Assume taxes are irrelevant. Which of the following non-tax related issues will be least important to a small firm that has recently become publicly traded?

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Quizplus · Accepted Answer

Exclusion clauses refer to provisions in contracts that limit liability, and are typically more relevant to larger firms with complex contracts. For a small firm that has recently become publicly traded, investor preferences, dividend smoothing, and executive ownership are typically more important factors to consider. Exclusion clauses relate to contractual agreements and are not directly relevant to a small firm's status as a publicly traded company. The other options, investor preferences, dividend smoothing, and executive ownership, are all important factors for a publicly traded company to consider in order to maintain investor confidence and maximize shareholder value.

Assume Taxes Are Irrelevant