Corporation

What does it mean for Happy Toys to become a public company? 

• It will sell ownership shares to the public.

• it will close its store.

• It will give away its toys for free.

Why might Happy Toys need to strengthen its management team?

•    To reduce the number of stores it has.

• To handle the responsibilities of being a bigger company.

Which of the following is NOT a characteristic of Happy Toys to have to become public?  

•    Keeping its financial information private.

• A strong management teams.

• Transparency.

Happy Toys should have a weak management team if it wants to become a public company.

• True

• False

Investors may not be interested in buying shares of Happy Toys if they don't believe it has a plan for growth.

• True

• False

Imagine you are the owner of Happy Toys. Why do you think it's important to have a clear plan for growth before becoming a public company?