Which of the following statements is true?

Question

Quizplus · Accepted Answer

Publicly traded firms have access to a larger pool of potential candidates for top management positions, which makes it easier for them to attract and retain top talent. This is because individuals may perceive publicly traded firms as providing more job security and growth opportunities compared to private ones. Option A is incorrect because the secondary market for a firm's shares can become more active as investors trade the shares among themselves, driving up demand and prices. Option B is incorrect because IPOs can provide firms with access to significant amounts of capital, often more than what can be raised through private sources. Option D is incorrect because entrepreneurs can maintain control over their businesses by issuing different classes of shares that have different voting rights.

Which of the Following Statements Is True