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Accounting help, does an incorporated organization have to go public? What are the pros and cons...

Accounting help, does an incorporated organization have to go public? What are the pros and cons of going public?

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Answer #1

An incorporated organization if they need, can move from private to public by Initial public offering (IPO). It is not mandatory for an incorporated organization to go public.

Pros

1.Helps raise capital by company to invest in func operations, expansion and acquisition.

2. increases prestige

3. Sharing strategic information through periodic reporting.

4. sharing financial gain

5. Helps to facilitate mergers and acquisitions.

Cons

1. Diversifies ownership

2. imposes restriction on management.

3. Regulatory restrictions

4. Enhanced reporting requirements.

5. The process can be expensive.

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