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Resource Mobilization — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipResource Mobilization4 Marks
Question
State the limitations of Public Issues.
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Answer

The various limitations/ obligations are as follows:
  1. Increasing accountability to public shareholders.
  2. Need to maintain dividend and profit growth trends.
  3. Becoming more vulnerable to an unwelcome takeover.
  4. Need to observe and adhere strictly to the rules and regulations by governing bodies.
  5. Increasing costs in complying with higher level of reporting requirements.
  6. Relinquishing some control of the company following the public offering.
  7. Suffering a loss of privacy as a result of media interest.

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