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Asempa Private Company limited has made strides in business over the past 15 years. Management is deciding to penetrate other markets to increase the market share. However, the business requires more capital injection to enable it expand its business. The best option so far is for the company to go public, then only can the company issue financial instruments such as equity shares, preference shares, bonds and debentures etc. to raise additional capital.   From the case above, examine the effect of the decision to go public On the financial position of the firm On ownership structure On management control

Asempa Private Company limited has made strides in business over the past 15 years. Management is deciding to penetrate other markets to increase the market share. However, the business requires more capital injection to enable it expand its business. The best option so far is for the company to go public, then only can the company issue financial instruments such as equity shares, preference shares, bonds and debentures etc. to raise additional capital.   From the case above, examine the effect of the decision to go public On the financial position of the firm On ownership structure On management control

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Asempa Private Company limited has made strides in business over the past 15 years. Management is deciding to penetrate other markets to increase the market share. However, the business requires more capital injection to enable it expand its business. The best option so far is for the company to go public, then only can the company issue financial instruments such as equity shares, preference shares, bonds and debentures etc. to raise additional capital.

 

From the case above, examine the effect of the decision to go public

  1. On the financial position of the firm
  2. On ownership structure
  3. On management control

 

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