Characteristics of Private And Public Companies - SS1 Economics Past Questions & Answers - page 1

1

Which type of company has a limited number of shareholders?

A

Public company

 

B

Private company

C

Both

CORRECT OPTION: b
2

Which type of company has greater access to capital?

A

Public company

 

 

B

Private company

C

Both

CORRECT OPTION: a
3

Which type of company has a more complex governance structure?

A

Public company

 

 

B

Private company

C

Both

CORRECT OPTION: a
4

Which type of company is not required to disclose financial information to the public?

A

Public company

 

 

B

Private company

C

Both

CORRECT OPTION: b
5

Which type of company has shares that can be traded on a stock exchange?

A

Public company

 

B

Private company

C

Both

CORRECT OPTION: a
6

Which type of company has shares that can be traded on a stock exchange?

A

Public company

 

B

Private company

C

Both

CORRECT OPTION: a
7

What are the 3 characteristics of private companies?

 

Often have a limited number of shareholders

  • Shares cannot be traded on a stock exchange.

  • Limited access to capital compared to public companies.

 

8

What are the 4 characteristics of public companies?

Owned by a large group of shareholders

  • Required to disclose financial information to the public.

  • A larger and more diverse group of shareholders.

  • Shares can be traded on a stock exchange.

 

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