Question

Seedling Plant Science invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs a large amount of funding—fast! The handful of seed scientists that own the company decide to offer shares of stock to general investors. This first-time offering is a(n)___________.

Answer 1

Seedling Plant Science's first-time offering of shares to general investors is known as an initial public offering (IPO). The funding raised would help them expand distribution of their innovative drought-resistant grass seed globally, which is important for developing sustainable crops that can tolerate extreme conditions such as drought.

Step-by-step explanation:

The first-time offering of shares of stock to general investors by a company is known as an initial public offering (IPO). When a company like Seedling Plant Science decides to go public, they are looking to quickly raise a large amount of capital to support the expansion of their business operations. In the context of Seedling Plant Science, they would use this funding to expand the distribution of their drought-resistant grass seed worldwide. This grass seed is a significant innovation in biotechnology, as it fosters the development of more sustainable crops that can withstand extreme environmental conditions like drought, which contributes to ensuring food security and promoting biodiversity.

Why would anyone grow plants like this? Crops like the drought-resistant grass seed created by Seedling Plant Science carry immense benefits. They are more likely to survive in harsh climates and require less water, thus conserving resources and supporting environmental conservation.

Answer 2

Answer: Initial public offering (IPO)

Step-by-step explanation:

Initial public offering (IPO) is also known as stock market launch, it is the selling of a company's shares to public investors in other to raise capital. This is also termed "going public" or "floating" because it is the first time a company permits stockholders, which means the company was initially private- owned but has now gone public.

A company becoming IPO allows it to grow, expand and raise capital.

Advantages of IPO.

• It helps a company enlarge their equity base.

• It helps a company have easy access to capital.

• It creates multiple sources of financing such as equity, cheap loans from bank etc.

Disadvantages of IPO.

• Increased in cost which includes legal cost, marketing, communication,and accounting cost, etc.

• It requires more time, attention, and effective management skills.