Question

If the company can make arrangements for raising the capital privately so that pubic appeal is unnecessary, the company is required to prepare a what​

Answer 1

Answer:

If the company can make arrangements for raising the capital privately so that pubic appeal is unnecessary, the company is required to prepare a ______

Answer 2

• The company can make arrangements for raising capital privately so that public appeal is unnecessary; it is known as in house capital.
• The major reason why a company e races in house capital is that there are very few requirements of reporting.
• A private company does not have to follow the Securities and Exchange Commission rules which would require annual reporting and third party auditing.
• A public offering is a very expensive and time consuming process. The major problem is the loss of management of control and enhanced reporting requirements.