CUET Preparation Today
| Which of the following is/are a disadvantage (s) of raising share capital through the Primary Market? |
Suffering a loss of privacy as a result of media interest. Need to maintain dividend and profit growth trends . Becoming more vulnerable to an unwelcome takeover. All of the above. |
| All of the above. |
| While there are benefits to going public, it also means additional obligations and reporting requirements such as: Increasing accountability to public shareholders Need to maintain dividend and profit growth trends Becoming more vulnerable to an unwelcome takeover Need to observe and adhere strictly to the rules and regulations by governing bodies Increasing costs in complying with higher level of reporting requirements Relinquishing some control of the company following the public offering Suffering a loss of privacy as a result of media interest |
