Distinctions Between Public And Private Companies - SS2 Accounting Past Questions and Answers - page 1

1

How is ownership structured in a public company?

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A

Owned by individuals or a small group of investors

B

Owned by a large number of investors who hold shares in the company

C

Owned by the government

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2

Are public companies publicly traded on a stock exchange?

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A

Yes

 

B

No

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3

Are private companies required to disclose financial and operational information to the public?

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A

Yes

B

No

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4

Are public companies subject to fewer regulatory requirements than private companies?

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A

Yes

B

No

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5

Can private companies raise capital through public offerings of shares?

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A

Yes

B

No

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6

What is one of the key differences between public and private companies? 

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7

What is one of the benefits of being a public company?

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