1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Daniel [21]
3 years ago
13

The cost of meeting SEC and possibly additional state reporting requirements regarding disclosure of financial information, the

danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public. True or false?
Business
2 answers:
Rama09 [41]3 years ago
8 0

Answer:

True.

Explanation:

Danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.

Companies that seeks to sell its stock on different stock markets or other major public exchanges must meet and maintain numerous listing requirements. Failure to comply with these mandates on an ongoing basis could cause the stock to become delisted from the exchange. The chief purpose of these requirements is to increase market transparency in an effort to foster investor confidence.

inna [77]3 years ago
3 0

Answer:

True.

Explanation:

In business, going public is a term that is used to describe the process in which a private company offers an initial public offering (IPO), by doing this, the company becomes a publicly-traded and owned entity. Going public is a good way for businesses to raise capital for expansion.

Going public has its disadvantages however, and they are as follows:

  • It is an expensive process.
  • Loss of management control.
  • Additional reporting requirements.
  • Increased liability is possible.
  • Possibility of an inactive market.
You might be interested in
Which best describes the types of indicators that the HDI measures?
dolphi86 [110]

Answer:

O social and economic indicators

Explanation:

The Human Development Index (HDI) is a statistic used to measure a country's achievements in different aspects of its social and economic welfare. The united nations developed HDI to evaluate different dimensions of human development in a country. Dimensions of human development refer to people's health, educational level, and standards of living.

The HDI  makes comparisons between countries by analyzing components such as average annual income and educational achievements.

5 0
2 years ago
Read 2 more answers
Several years ago the jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon tha
Triss [41]
<span>If several years ago, the Jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually, then the after-tax cost of debt of the firm will be 4.65%.</span>
8 0
3 years ago
Houston Houston Office Equipment manufactures and sells metal shelving. It began operations on January​ 1,2014.
Vanyuwa [196]

Solution:

1) If 2 pounds of direct materials are used to make one unit of finished product, then 115,000 units × 2 lbs, or 230,000 lbs were used at $0.65 per lb of direct materials i.e. ($149,500 ÷ 230,000 lbs.).

The Formula for calculating Ending Direct Material Cost =  [Ending Direct Material Inventory * Cost per lb]

Therefore, Ending Direct Materials cost is 1,900 lbs. * $0.65 = $1,235.

2) Manufacturing Costs for 115,000 units  

   Variable Fixed Total

   Direct materials costs – $149,500  + Direct manufacturing labor costs – 31,500  + Plant energy costs – 3,000  + Indirect manufacturing labor costs

 

   (Variable + Fixed) i.e. 15,000+12,000 - 27,000  + Other indirect manufacturing costs

 

   (Variable + Fixed) i.e. 10,000+32,000 - 42,000

    So, Cost of goods manufactured - $253,000

Average unit manufacturing cost = $253,000 ÷ 115,000 units

                                                       = $2.20 per unit

Finished Goods Inventory at Dec. 31, 2014 = $15,400

Therefore Finished goods inventory total units = $15400 / $2.20

                                                                                = 7,000 units

3) Units sold in 2014 = Beginning inventory + Production – Ending inventory

                                   = 0 + 115,000 –7,000

                                 = 108,000 units

Therefore, Selling price in 2014 = Total Revenues / Units Sold

                                                      = $583,200 ÷ 108,000

                                                      = $5.40 per unit

4) Operating Income for 2014

            Revenues(108,000 units sold × $5.40) = $583,200

           Cost of units sold:

            Beginning finished goods, Jan. 1, 2014 = $0

            Cost of goods manufactured = $253,000

           Cost of goods available for sale = $253,000

           Ending finished goods, Dec. 31, 2014 = $15,400

           So, Cost of Units sold ($253000 - $15400) = $237,600

Therefore, Gross margin = Total Revenue - Cost of Units Sold

                                          = $583,200 - $237,600

                                         = $345,600

Operating costs:  Marketing, distribution, and customer-service costs

Variable + Fixed i.e. ($126,000 + $48,000) = $174,000

Administrative costs = $57000

Total Operating Costs = $231,000

Therefore Operating income for 2014 = $345600 - $231,000

                                                                = $114600

3 0
2 years ago
Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds?
vitfil [10]

Answer:

Exception reporting

Explanation:

Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds?

Drill down

Key performance indicators

Status access

Trend analysis

Exception reporting

Dashboard reporting is a process used to represent key performance indicators and relevant business data in a visual and interactive way and Exception reporting is a method of data analysis that compares an incoming stream of data to an established base set of data and flags items that don't quite match i.e,those instances in which actual performance deviated significantly from expectations and it enables users to have reports that highlight deviations larger than certain thresholds.

3 0
2 years ago
Help ASAP TRUE OR FALSE QUESTION
Eva8 [605]

Answer:

true I think.

Explanation:

3 0
3 years ago
Read 2 more answers
Other questions:
  • During 2016, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New Age
    15·2 answers
  • Triangle Enterprises has no debt but can borrow at 8 percent. The firm's WACC is currently 13.2 percent, and there is no corpora
    5·1 answer
  • Which of these situations would give rise to the free-rider problem? Items (6 items)
    7·1 answer
  • If output equals a*(5k + 2l), what is output if a equals 2,000, capital equals 10, and labor equals 100?
    7·1 answer
  • If financial markets were inefficient,
    15·1 answer
  • Third Parties In General (not Just With Health Care) Are Inefficient Because
    6·1 answer
  • The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,00
    8·1 answer
  • Jacoby Company received an offer from an exporter for 25,400 units of product at $18 per unit. The acceptance of the offer will
    14·1 answer
  • XYZ, Inc. has a beta of 1.06. The risk-free rate is 6 percent and the expected return of the market is 15.25 percent. What is XY
    9·1 answer
  • Johnson and Johnson targeted the adult market with its baby powder and shampoo. In _____, Johnson and Johnson increased the cons
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!