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hich of the following is not the advantages of corporations going public? Select one: A. Ability...

hich of the following is not the advantages of corporations going public? Select one:

A. Ability to remove assets.

B. Professional management.

C. Transferability of ownership.

D. Limited shareholder liability.

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Answer #1

When a corporation goes public, it derives certain advantages like professional management since separate professional are hired to manage the affairs of the corporation, transferability of ownership since ownership can be easily transferred by selling of shares and limited liability of shareholders since shareholders are liable only upto the par value of shares . Hence, options (B), (C) and (D) are the advantages derived bty a corporation when it goes public.

Ability to remove assets is not an advatage which can be derived by going public. Hence, correct option is (A)

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