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Unformatted text preview: a. b. c. d. liquidity for investors ease of acquiring capital growth opportunity required compliance with Sarbanes-Oxley 5. A disadvantage of funding a companys growth using equity capital is: a. b. c. d. founders will own a smaller percentage of the company as investors purchase shares. it has a negative connotation in the media. the company will encounter higher tax rates greater environmental regulations will be enforced. 6. One of the disadvantages of bootstrapping is: a. Growth rates may be constrained by the lack of capital b. The founders retain 100% ownership of the company c. Tax-wise, there are problems d. Bootstrapping is not strictly legal in the USA...
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- Spring '08