Impact of the Sarbanes-Oxley Act (SOX)

Assume that you are a CEO of a medium-sized company that
needs a significant influx of cash for several expansion projects. As the CEO,
you must determine whether your company should remain private or go public.
Some companies postpone going public due to the unpredictability of economic
and market conditions. Consider the ramifications of both alternatives.
Construct an argument for and against going public. Before providing your
response, review the guidelines and regulations associated with going public by
visiting Small Business and the SEC located at .

Use the Internet to research SOX law, located at .

Write a four to five (4-5) page paper in which you:

1. Outline
   three (3) ways in which your medium-sized private company may benefit
   from going public, providing a rationale for each.
2. Create
   an argument that the same goals may be achieved if the company remains a
   privately held entity. Provide support for your argument.
3. When
   a company decides to go public, it can typically obtain capital by
   issuing stocks or bonds. Suggest four (4) leading financial ratios that
   will be evaluated and how each will impact the company’s decision to
   obtain expansion funds. Determine whether the results of the ratios would
   alter the decision to go public. 
4. By
   researching the results of SOX compliance surveys, assess the financial
   impact that SOX might have on your company if it decides to go public.
   Considering the impact of SOX compliance, take a position as to whether
   your company can overcome the challenges posed by SOX compliance if the
   decision is to go public. Based on your research, support your decision
   by identifying the potential advantages and disadvantages that SOX may
   have on your company. Provide specific examples.
5. Make
   a recommendation as the CEO regarding the alternative (i.e., going public
   or staying private) that will best support the company’s expansion goals.
   Support your position.
6. Use
   at least four (4) quality academic resources in this assignment. Note:
   Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

• Be
  typed, double spaced, using Times New Roman font (size 12), with one-inch
  margins on all sides; citations and references must follow APA or
  school-specific format. Check with your professor for any additional
  instructions.
• Include
  a cover page containing the title of the assignment, the student’s name,
  the professor’s name, the course title, and the date. The cover page and
  the reference page are not included in the required assignment page
  length.

The specific course learning outcomes associated with this
assignment are:

• Analyze
  financial reports, prepare analysis, and draw conclusions based on the
  financial analysis.
• Calculate
  and interpret various financial and operating ratios used in business.
• Use
  technology and information resources to research issues in accounting
  management.
• Write
  clearly and concisely about accounting management using proper writing
  mechanics.