Which of the following is a reason companies might avoid going public?

Companies might choose to avoid going public primarily due to the loss of confidentiality and control they would experience. When a company goes public, it is required to disclose a significant amount of information about its operations, financial performance, and strategic direction to the public and regulatory agencies. This transparency can lead to vulnerabilities as competitors and the general public gain access to sensitive data that could be used against the company.

Additionally, going public typically dilutes the control that original owners or founders have over the company. Shareholders, particularly institutional investors, may exert influence on management decisions and the company's strategic direction, which can conflict with the vision of the original leaders. Thus, the desire to maintain confidentiality regarding business operations and preserve control over decision-making processes are compelling reasons for some companies to remain private.