Aardvark is a small pest-control business that has 30 employees. The company started business within the past year, and needs to make a decision on how best to make sure its finances are managed well as the company continues to grow its customer base and its business. Aardvark is considering undertaking an IPO in order to raise money. Which of the following, if true, would strengthen the case for doing so?

Question

Quizplus · Accepted Answer

Aardvark having a healthy amount of assets will strengthen the case for undertaking an IPO as potential investors will view the company as having value and will be more likely to invest. This will allow the business to obtain the necessary funds to continue to grow and expand operations. The other options (A, B, C, and E) do not provide a strong reason for undertaking an IPO.

Aardvark Is a Small Pest-Control Business That Has 30 Employees