Assume that you are a CEO of a medium-sized company that needs a significant influx of cash for several expansion projects. As the CEO, you must determine whether your company should remain private or go public. Some companies postpone going public due to the unpredictability of economic and market conditions. Consider the ramifications of both alternatives. Construct an argument for and against going public. Before providing your response, review the guidelines and regulations associated with going public by visiting Small Business and the SEC located at https://www.sec.gov/info/smallbus/gasbsec.htm.
Use the Internet to research SOX law, located at https://www.sarbanes-oxley-101.com/sarbanes-oxley-compliance.htm.
Write a four to five (4-5) page paper in which you:
- Outline three (3) ways in which your medium-sized private company may benefit from going public, providing a rationale for each.
- Create an argument that the same goals may be achieved if the company remains a privately held entity. Provide support for your argument.
- When a company decides to go public, it can typically obtain capital by issuing stocks or bonds. Suggest four (4) leading financial ratios that will be evaluated and how each will impact the company’s decision to obtain expansion funds. Determine whether the results of the ratios would alter the decision to go public.
- By researching the results of SOX compliance surveys, assess the financial impact that SOX might have on your company if it decides to go public. Considering the impact of SOX compliance, take a position as to whether your company can overcome the challenges posed by SOX compliance if the decision is to go public. Based on your research, support your decision by identifying the potential advantages and disadvantages that SOX may have on your company. Provide specific examples.
- Make a recommendation as the CEO regarding the alternative (i.e., going public or staying private) that will best support the company’s expansion goals. Support your position.
- Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as academic resources.
Just found out this Prof. does not require an introduction or conclusion. He is basically just looking for answers to the questions that are asked and would like for us to reference the question as a soft heading before we discuss the topic. Every paragraph for have an in-text citation.
No direct quotes!!
Please use APA format 6th edition.
Every paragraph should have in-text citation.
No direct quotes. Paraphrase and put a citation.
No abstract, introduction, or conclusion.
Your topic sentence should clearly identify which question is being addressed. Should not have to play a guessing game!!
Paraphrase the question as a sub topic – Example – Three ways in which a medium-sized company may benefit from going public are (1) (2) (3). Please elaborate on each. So there should be 3 paragraphs for question 1 and question 2.
Answer the questions in order.
You must log in and be a buyer of this download to submit a review.