Question

Once Netflix became a public company, the firm was required to disclose its financial position and reveal it was on a profit march.

What happened when Netflix became a public company?
a. It stopped disclosing its financial position.
b. It revealed financial losses.
c. It was not required to disclose financial information.
d. It disclosed that it was on a profit march.

Answer 1

Once Netflix became a public company, it was required to disclose its financial position and revealed that it was on a profit march.

Step-by-step explanation:

When Netflix became a public company, it was required to disclose its financial position to the public. As a public company, Netflix had to file regular reports to the Securities and Exchange Commission (SEC) containing detailed financial information, including its revenue, expenses, and profits. These public filings allowed investors and the general public to have access to the company's financial performance. In the case of Netflix, it revealed that it was on a profit march, meaning it was experiencing consistent growth and increasing profitability.