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A private company was formed five years ago and is currently owned and managed by its five founders. The founders, who each own the same number of shares have generally co-operated effectively but there have also been a number of areas where they have disagreed
The company has grown significantly over this period by re-investing its earnings into new investments which have produced excellent returns
The founders are now considering an Initial Public Offering by listing 70% of the shares on the local stock exchange
Which THREE of the following statements about the advantages of a listing are valid?
Suggested Answer: C
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33 comments · newest first
AI
Aide
12 months ago
Increases dividend payouts? That’s a bit optimistic, don’t you think?
LE
Lelia
12 months ago
Totally agree, an exit route for founders is a big plus!
MA
Maricela
1 year ago
Not sure about reducing agency conflict... seems tricky.
MA
Ma
1 year ago
I think it also increases the profile and reputation of the business!
RO
Roselle
1 year ago
Listing can definitely help access wider sources of finance.
RU
Rueben
1 year ago
I practiced a similar question where we talked about exit routes for founders. I think option D makes sense too.
LO
Louisa
1 year ago
I feel like increasing the profile and reputation of the business is a common reason for going public, so option E seems right to me.
EV
Evelynn
1 year ago
I'm not so sure about option A. I thought agency conflicts might actually increase with more shareholders involved.
WI
Winfred
1 year ago
I remember discussing how going public can help access wider sources of finance, so I think option C is definitely valid.
AM
Amie
1 year ago
Hmm, I'm not too familiar with Jenkins security features. I'll have to think this through carefully and review my notes on Jenkins before answering.
AV
Avery
1 year ago
Hmm, I'm a bit confused about the campaign hierarchy limit. I'll need to double-check the documentation on that before deciding on the best approach.
SH
Shayne
2 years ago
I heard the founders are planning to name the IPO 'Shares of the Founders' Wealth Extraction Scheme'. Catchy, right?
GR
Graham
1 year ago
D: Yeah, I heard about the IPO name, it's quite catchy and interesting.
NI
Nickole
1 year ago
C: I think option E is important too, it would increase the company's profile and reputation.
DO
Donte
1 year ago
B: I agree, option D would also be a good advantage for the founders.
RE
Ressie
1 year ago
A: I think option C is definitely valid, it would help the company access more finance.
CO
Coleen
1 year ago
D: Yeah, those are all great points. It's important to consider all the advantages before making a decision.
JO
Jose
1 year ago
C: I think option E is important too, it can increase the profile and reputation of the business.
WA
Wade
1 year ago
B: I agree, option D is also a good advantage, providing an exit route for the founders.
SH
Shawana
1 year ago
A: I think option C is definitely valid, it can help access wider sources of finance.
AB
Abraham
2 years ago
Reducing agency conflict? Pfft, that's like trying to herd cats. Good luck with that, Option A.
ME
Mel
1 year ago
B: Yeah, that's true. It can also provide an exit route for the founders.
TI
Tiara
1 year ago
A: A listing can help access wider sources of finance.
LA
Laurel
2 years ago
I believe option E is valid too, as listing can increase the profile and reputation of the business.
MI
Mitsue
2 years ago
Access to wider sources of finance is crucial for continued growth. Option C is a must-have.
DE
Denise
2 years ago
Increasing the company's profile and reputation through a public listing is a no-brainer. Option E is spot on.
CI
Ciara
1 year ago
Reducing agency conflict is essential for smooth operations.
TH
Therese
1 year ago
An exit route for the founders would provide them with liquidity.
DA
Dalene
1 year ago
Access to wider sources of finance is also important for expansion.
LY
Lynsey
1 year ago
I agree, increasing the company's profile is crucial for growth.
JO
Jolene
2 years ago
I agree with that. Option D is also valid as it provides an exit route for the founders.
MA
Mammie
2 years ago
The IPO seems like a great opportunity for the founders to cash out and move on to new ventures. Option D is definitely valid.
OC
Octavio
2 years ago
I think option C is valid because listing can help access wider sources of finance.