Holooly Plus Logo
Holooly Plus Logo

Question 1.7: Why might this be an important sanction against a non-compli...

Why might this be an important sanction against a non-compliant business?

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

A major advantage of a Stock Exchange listing is that it enables investors to sell their shares whenever they wish. A company that is suspended from listing would find it hard, and therefore expensive, to issue shares, because there would be no ready market for them.

Related Answered Questions

Question: 8.RQ.1

How might a business find out whether a particular planned level of gearing would be accept-able to investors? ...

Verified Answer:

To fi nd out whether or not a planned level of gea...
Question: 1.RQ.4

What are the main drawbacks of adopting the stakeholder approach as the basis for setting the objectives of a business? ...

Verified Answer:

The stakeholder approach raises various difficult ...
Question: 1.RQ.3

Some managers, if asked what the main objective of their business is, may simply state, ‘To survive!’ What do you think of this as a primary objective? ...

Verified Answer:

Survival may be a basic objective for a business. ...
Question: 1.RQ.2

Why is wealth maximisation viewed as superior to profit maximisation as a business objective? ...

Verified Answer:

Wealth maximisation is considered to be superior t...
Question: 1.RQ.1

What are the main tasks of the finance function within a business? ...

Verified Answer:

The key tasks of the finance function are: ● finan...
Question: 1.10

What might financial institutions wish to discuss with the directors of a business? Try to think of at least two financial and two non-financial aspects of the business. ...

Verified Answer:

Some of the more important aspects that are likely...
Question: 1.9

Why might it be a problem for a financial institution which holds a substantial number of shares in a poorly performing business to simply sell the shares? ...

Verified Answer:

Where a substantial number of shares are held, a d...
Question: 1.8

The rise of financial institutions means that private individuals have less direct invest-ment in listed shares than in the past. Does that mean they have less financial interest in listed shares? ...

Verified Answer:

No. It means that individuals are tending to inves...
Question: 1.6

Is it always possible for shareholders to exit from a business easily? Can you think of an example where it may be difficult for a shareholder to sell shares in a business? ...

Verified Answer:

One important example is a shareholder wishing to ...
Question: 1.5

Which groups might be regarded as stakeholders in a business? Try to think of at least five groups. ...

Verified Answer:

Those regarded as stakeholders may include: ● empl...