Unquoted Companies: Definition And Features - SS2 Accounting Past Questions and Answers - page 1
Which of the following is another term for unquoted companies?
Publicly traded companies
Private companies
Sole proprietorship
Are unquoted companies required to comply with the same reporting and disclosure requirements as quoted companies?
Yes
No
It depends on the size of the company
Which of the following is a feature of unquoted companies?
They are publicly traded on a stock exchange
They are subject to strict regulation
They are typically owned by a small group of shareholders
Which of the following is an example of an unquoted company in Nigeria?
Dangote Cement Plc
Innoson Vehicle Manufacturing Company Limited
Nestle Nigeria Plc
Do unquoted companies have to comply with the same level of regulation as quoted companies in Nigeria?
Yes
No
It depends on the industry the company operates in
What is an unquoted company and how does it differ from a quoted company?
An unquoted company, also known as a privately held company, is a business that is owned by a small group of shareholders and is not publicly traded on a stock exchange. It is not required to comply with the same reporting and disclosure requirements as a quoted company and is subject to less regulation. In contrast, a quoted company is a business that has issued shares of stock to the public and is traded on a stock exchange.
What are the advantages and disadvantages of being an unquoted company in Nigeria?
The advantages of being an unquoted company include greater control over the business and less regulation compared to quoted companies. Disadvantages may include limited access to capital, as they cannot raise funds by selling shares to the public, and less transparency which can make it difficult to attract investors.