Explanation:

• Option A (Incorrect): Private companies typically incur lower regulatory costs compared to public companies. By going private, a company can reduce expenses associated with regulatory compliance and stock exchange requirements.

• Option B (Incorrect): Private companies often focus on long-term value creation rather than short-term results. Private equity investors can address operational issues and manage the company for sustained growth.

• Option C (Correct): Unlike public companies, private companies lack an active secondary market for their equity. Trading shares of a private company requires direct negotiations between investors, whereas public company shares are traded in liquid secondary markets.