Types of Companies - Public Company: Definition And Features - SS2 Accounting Past Questions and Answers - page 1
1
What is a public company?
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A
A business organization that is privately owned and is not publicly traded on a stock exchange.
B
A business organization that is publicly traded on a stock exchange.
C
A business organization that is owned by the government.
2
Who can buy and sell shares of a public company?
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A
Only a small group of investors
B
Anyone
C
Only the founders and their families
3
How is a public company managed?
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A
By the general public
B
By a board of directors and executive officers
C
By the government
4
How can public companies raise capital?
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A
Only through public offerings of shares
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B
Only through private investment and loans
C
Through public offerings of shares, private investment, and loans
5
Are public companies subject to regulations and reporting requirements?
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A
No, they are not subject to any regulations or reporting requirements.
B
Yes, they are subject to a wide range of regulations and reporting requirements from government agencies and stock exchanges.
6
What is one of the benefits of a public company?
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7
What is one of the downsides of being a public company?
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