Distinctions Between Public And Private Companies - SS2 Accounting Past Questions and Answers - page 1
How is ownership structured in a public company?
Owned by individuals or a small group of investors
Owned by a large number of investors who hold shares in the company
Owned by the government
Are public companies publicly traded on a stock exchange?
Yes
No
Are private companies required to disclose financial and operational information to the public?
Yes
No
Are public companies subject to fewer regulatory requirements than private companies?
Yes
No
Can private companies raise capital through public offerings of shares?
Yes
No
What is one of the key differences between public and private companies?
Ownership structure - public companies are owned by a large number of investors, while private companies are owned by individuals or a small group of investors.
What is one of the benefits of being a public company?
Public companies have greater liquidity and can raise capital through public offerings of shares.