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