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CIMA Financial Strategy F3 Question # 64 Topic 7 Discussion

CIMA Financial Strategy F3 Question # 64 Topic 7 Discussion

F3 Exam Topic 7 Question 64 Discussion:
Question #: 64
Topic #: 7

Which of the following statements about companies seeking a stock market listing is correct?


A.

A listing may make it harder for a company to raise money from its existing lenders.


B.

The enhanced reputation of the company can improve its credit rating reducing the risk of non-payment to suppliers and lenders.


C.

When a company seeks a listing this may unsettle its staff, potentially resulting in a loss of valued employees.


D.

A listing will require the owners to either sell a majority of their shares, or, if they retain their shares, to step down from the board.


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