Under Bradley's management, Robo-Tech has had a history of strong financial performance and solid growth potential, and well developed strategic vision and business plan. In order to help with the process of going public, Robo-Tech has hired a team of professional advisors, including lawyers, investment bankers, and accountants. These professionals will assist Robo-Tech with the registration, valuation, marketing, and placement processes. Robo-Tech will also have to decide on a listing exchange, where its shares will continuous trade after the public offering. Options include the New York Stock Exchange, the American Stock Exchange, a regional exchange, or the Nasdaq Market.

If all goes according plan, Robo-Tech will soon have access to a new valuable external financing resource, that it can use to finance it future growth potential.

To Do

a. For Robo-Tech, what are the advantages of being a publicly listed company?

a. For Robo-Tech, what are the advantages of being a publicly listed company? (Select all the choices that apply.)

A.

For a publicly-listed company shareholders provide cash without having an ability to take the company to bankruptcy court if a payment is not made.

B.

Being a publicly-listed company provides access to the money they need to grow.

C.

By going public, the owner can diversify their portfolio. In fact, without going public, it is difficult to determine the value of their firm.

D.

Going public gives the owner the chance to get a return for his or her hard effort.