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CIMAPRA19-F03-1 Exam - Topic 4 Question 66 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 66
Topic #: 4
[All CIMAPRA19-F03-1 Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Celeste at Mar 23, 2023, 08:48 PM

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Aide
7 months ago
Increases dividend payouts? That’s a bit optimistic, don’t you think?
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Lelia
7 months ago
Totally agree, an exit route for founders is a big plus!
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Maricela
7 months ago
Not sure about reducing agency conflict... seems tricky.
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Ma
7 months ago
I think it also increases the profile and reputation of the business!
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Roselle
8 months ago
Listing can definitely help access wider sources of finance.
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Rueben
8 months ago
I practiced a similar question where we talked about exit routes for founders. I think option D makes sense too.
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Louisa
8 months 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.
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Evelynn
8 months ago
I'm not so sure about option A. I thought agency conflicts might actually increase with more shareholders involved.
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Winfred
8 months ago
I remember discussing how going public can help access wider sources of finance, so I think option C is definitely valid.
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Amie
8 months 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.
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Avery
8 months 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.
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Shayne
1 year ago
I heard the founders are planning to name the IPO 'Shares of the Founders' Wealth Extraction Scheme'. Catchy, right?
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Graham
11 months ago
D: Yeah, I heard about the IPO name, it's quite catchy and interesting.
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Nickole
11 months ago
C: I think option E is important too, it would increase the company's profile and reputation.
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Donte
12 months ago
B: I agree, option D would also be a good advantage for the founders.
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Ressie
12 months ago
A: I think option C is definitely valid, it would help the company access more finance.
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Coleen
12 months ago
D: Yeah, those are all great points. It's important to consider all the advantages before making a decision.
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Jose
1 year ago
C: I think option E is important too, it can increase the profile and reputation of the business.
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Wade
1 year ago
B: I agree, option D is also a good advantage, providing an exit route for the founders.
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Shawana
1 year ago
A: I think option C is definitely valid, it can help access wider sources of finance.
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Abraham
1 year ago
Reducing agency conflict? Pfft, that's like trying to herd cats. Good luck with that, Option A.
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Mel
1 year ago
B: Yeah, that's true. It can also provide an exit route for the founders.
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Tiara
1 year ago
A: A listing can help access wider sources of finance.
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Laurel
1 year ago
I believe option E is valid too, as listing can increase the profile and reputation of the business.
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Mitsue
1 year ago
Access to wider sources of finance is crucial for continued growth. Option C is a must-have.
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Denise
1 year ago
Increasing the company's profile and reputation through a public listing is a no-brainer. Option E is spot on.
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Ciara
12 months ago
Reducing agency conflict is essential for smooth operations.
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Therese
12 months ago
An exit route for the founders would provide them with liquidity.
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Dalene
12 months ago
Access to wider sources of finance is also important for expansion.
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Lynsey
1 year ago
I agree, increasing the company's profile is crucial for growth.
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Jolene
1 year ago
I agree with that. Option D is also valid as it provides an exit route for the founders.
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Mammie
1 year 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.
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Octavio
1 year ago
I think option C is valid because listing can help access wider sources of finance.
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