Types of Companies - Private Company: Definition And Features - SS2 Accounting Past Questions and Answers - page 1
1
What is a private company?
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A
A business organization that is publicly traded on a stock exchange.
B
A business organization that is privately owned and is not publicly traded on a stock exchange.
C
A business organization that is owned by the government.
2
Who typically owns a private company?
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A
The general public
B
The government
C
A small group of individuals, typically the founders, their families, and a small number of investors.
3
Can private companies sell shares to the public?
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A
Yes, they can sell shares to the public.
B
No, they cannot sell shares to the public.
4
Are shareholders of a private company liable for business debts and liabilities?
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A
Yes, they are fully liable for business debts and liabilities.
B
No, they have limited liability.
5
Are private companies required to disclose financial or operational information to the public?
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A
Yes, they are required to disclose all financial and operational information to the public.
B
No, they are not required to disclose financial or operational information to the public.
6
What is one of the key features of private company ownership?
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7
What is the main difference between private and publicly traded companies?
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