A disadvantage of going public is the
A)declining interest in the stock price necessary to run the business.
B)absence of interest in capital gains.
C)creation of a long-term relationship with non-beneficial banking institutions.
D)pursuit of otherwise unaffordable opportunities.
E)increase in the amount of company debt.

Question

Quizplus · Accepted Answer

Disadvantages of going public include the expense, time, and effort involved; the tendency to become more interested in the stock price and capital gains than in running the company properly; and the creation of a long-term relationship with an investment banking firm that won't necessarily always be a good one.

A Disadvantage of Going Public Is the