IPO, Opportunity Cost and Trade-offs - Y12 Business

What is a public limited company (plc)?

• A company owned by one person.

• A company that can sell shares to the public.

• A company that only sells products online.

• A company that cannot be traded on any stock market.

Why might a company decide to sell its shares to the public?

• To keep all its profits.

• To get more money for the company.

• To have fewer shareholders.

• To remain private.

What is a downside of a company going public or selling its shares?

• Getting more money.

• Needing to share more information with the public.

• Having a fun party to celebrate.

• Keeping all control of the company.

What does "opportunity cost" mean?

• The cost of taking an opportunity.

• The cost of missed chances.

• The price of something you didn't choose.

• The cost of doing business.

What is a trade-off?

• When you trade something with someone else.

• Choosing one thing over another.

• Getting the best of both worlds.

• A type of business transaction.

If you spend your money on a video game instead of a movie ticket, the movie is the:

• Sunk cost.

• Variable cost.

• Opportunity cost.

• Fixed cost.

Why might companies like being a public limited company?

• No one knows about them.

• They can get more money from selling shares.

• They don't have to make decisions.

• They have less work to do.

Selling shares to the public means the company is:

• Going under.

• Going private.

• Going public.

• Going bankrupt.

If the new skateboard you want costs £100 and the concert ticket you also want is £80, but you can only pick one, your opportunity cost is:

• £20

• £100

• £80

• £180

Trade-offs happen because:

• We always want more.

• We have unlimited money.

• We sometimes have to choose between things.

• We never have to make decisions.