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select one reason why a company would want to go private. to reduce inv…

Question

select one reason why a company would want to go private.

to reduce investor involvement in the companys operations

to receive a large injection of capital, if private investors are willing to buy the company’s stock at an above-market price

to increase the company’s exposure and prestige

to broaden and diversify

Explanation:

Brief Explanations
  • Analyzing each option:
  • "To reduce investor involvement in the company's operations" is a valid reason for going private, as public companies have more investor scrutiny and involvement.
  • "To receive a large injection of capital..." is incorrect because going private typically involves buying back shares (reducing capital from public investors), not receiving a capital injection in the same way.
  • "To increase the company’s exposure and prestige" is incorrect as public companies generally have more exposure.
  • The last option (partially visible) about broadening is incorrect as going private narrows ownership, not broadens.

Answer:

A. To reduce investor involvement in the company's operations