Sarbanes-Oxley [LO4] In response to the Sarbanes-Oxley Act, many small firms in the United States have opted to “go dark” and delist their stock.

Sarbanes-Oxley [LO4] In response to the Sarbanes-Oxley Act, many small firms in the United States have opted to “go dark” and delist their stock.

#1 Sarbanes-Oxley [LO4] (Professor)

Sarbanes-Oxley [LO4] In response to the Sarbanes-Oxley Act, many small firms in the United States have opted to “go dark” and delist their stock. Why might a company choose this route? What are the costs of “going dark”?

#2 Operating Cash Flow [LO4] (Professor)

Operating Cash Flow [LO4] Suppose a company’s operating cash flow has been negative for several years running. Is this necessarily a good sign or a bad sign?

#3 Standardized Financial Statements [LO1] (Professor)

Standardized Financial Statements [LO1] What types of information do common-size financial statements reveal about the firm? What is the best use for these common-size statements? What purpose do common-base year statements have? When would you use them?

……………………..Answer preview……………………..

Small firms can decide to go the route because the compliance with of the Oxley act might be costly for a small struggling firm and this may greatly and negative reduce the firm’s profit margin. The implication of deciding to go dark is that the firm’s capacity to access capital is boosted. This therefore means that the firm is removed from the stock exchange and does not benefit by getting any public money…………………….

APA

393 words

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