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.
Who can buy and sell shares of a public company?
Only a small group of investors
Anyone
Only the founders and their families
How is a public company managed?
By the general public
By a board of directors and executive officers
By the government
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
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.
What is one of the benefits of a public company?
Public companies offer a great deal of liquidity and access to capital to their owners.
What is one of the downsides of being a public company?
Public companies have a higher level of regulatory oversight and are subject to the expectations of the public and financial markets.