A disadvantage of going public is the
A. increase in the amount of company debt as a result of third-party stock sales.
B. creation of a long-term relationship with non-beneficial banking institutions.
C. declining interest in the stock price necessary to run the business.
D. pursuit of otherwise unaffordable opportunities, which can lead to overextension.
E. absence of interest in capital gains in favor of focus on the company.
Answer: B
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