Which of the following are not "backend" costs for an entrepreneur seeking capital by selling securities (shares of stock in the corporation)?
A)Prospectus printing costs
B)Investment banking fees
C)Legal fees
D)Marketing costs
E)Brokerage fees

Question

Which of the following are not "backend" costs for an entrepreneur seeking capital by selling securities (shares of stock in the corporation)?
A)Prospectus printing costs
B)Investment banking fees
C)Legal fees ​
D)Marketing costs
E)Brokerage fees

Quizplus · Accepted Answer

Prospectus printing costs are considered "frontend" costs as they are incurred before the securities are sold, unlike backend costs which are incurred after the sale.

Which of the Following Are Not "Backend" Costs for an Entrepreneur