Types of Companies - Public Company: Definition And Features - SS2 Accounting Past Questions and Answers - page 1
What is a public company?
A business organization that is privately owned and is not publicly traded on a stock exchange.
A business organization that is publicly traded on a stock exchange.
A business organization that is owned by the government.
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Who can buy and sell shares of a public company?
Only a small group of investors
Anyone
Only the founders and their families
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How is a public company managed?
By the general public
By a board of directors and executive officers
By the government
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How can public companies raise capital?
Only through public offerings of shares
Only through private investment and loans
Through public offerings of shares, private investment, and loans
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Are public companies subject to regulations and reporting requirements?
No, they are not subject to any regulations or reporting requirements.
Yes, they are subject to a wide range of regulations and reporting requirements from government agencies and stock exchanges.
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What is one of the benefits of a public company?
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What is one of the downsides of being a public company?
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