Which of the following is considered an advantage (for the corporation) of going public?
A)The president becomes more of a "public relations person."
B)Extensive and time-consuming reporting requirements
C)Increased liquidity for the corporation's shareholders
D)The cost of flotation

Question

Quizplus · Accepted Answer

Going public enables a corporation to offer its shares to a larger pool of investors, thus increasing liquidity for its shareholders, which can be considered an advantage for the corporation. Options A and B are not advantages, as a president becoming more of a "public relations person" may not necessarily bring benefits to the corporation, and extensive reporting requirements can be a disadvantage that comes with going public. Option D (the cost of flotation) is a disadvantage, not an advantage, as going public can be an expensive process.

Which of the Following Is Considered an Advantage (For the Corporation)