Which of the following is considered an advantage (for the corporation) of going public?
A) The president becomes a public relations man.
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 can lead to increased liquidity for the corporation's shareholders, as they can easily buy and sell shares on the stock market. This can make the company more attractive to investors and potentially lead to a higher stock price. The other options listed are disadvantages of going public, such as extensive reporting requirements and the high cost of the initial public offering (IPO).

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