Which of the following statements is true about shareholders in a public stock company?
Which of the following statements is true of shareholders in a public stock company? Shareholders who provide the risk capital are liable only to the capital specifically invested. What does "limited liability for investors" imply in a public stock company?
Which of the following is the best definition of a public company?
A public company—also called a publicly traded company—is a corporation whose shareholders have a claim to part of the company's assets and profits.Jan 20, 2021
What is a publicly traded company quizlet?
What is a public company? company with shares traded on one or more national stock exchange.
What makes a company public?
A public company is a company that has sold all or a portion of itself to the public via an initial public offering. The main advantage public companies have is their ability to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (i.e., cash) for expansion and other projects.
What are the characteristic of public enterprises?
Public enterprises are business organizations established and run by the government. It has some distinct features or characteristics such as government ownership and control, main motive of service, autonomy, continuity etc. Public enterprises are business enterprises established by government.
What are the characteristic of public corporation?
CHARACTERISTICS OF PUBLIC CORPORATION It is corporate under a special statute of the parliament which lay down its purpose, power and functions. It functions are primarily of a business or industrial nature. It enjoys complete administrative autonomy from the control of the executive.
Is your company publicly traded?
A company with many shareholders is not necessarily a publicly traded company. In the United States, in some instances, companies with over 500 shareholders may be required to report under the Securities Exchange Act of 1934; companies that report under the 1934 Act are generally deemed public companies.
What companies are not publicly traded?
Cargill. 2010 Revenue: $120 Billion One-Year Growth: 10.8% Cargill is the wealthiest privately owned business in the U.S., established at the close of the American Civil War in 1865.Koch Industries. ... Chrysler. ... Bechtel Corp. ... Mars Inc. ... Deloitte Touche Tohmatsu. ... PricewaterhouseCoopers International. ... Publix Supermarkets. ... More items...•Nov 11, 2011
Which of the following is your right as a shareholder of common stock?
Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.
What is an example of a public company?
Examples of public traded companies are Procter and Gamble, Google, Apple, Tesla, etc.
What is public company answer?
Solution. A public company is defined as a company that offers a part of its ownership in the form of shares, debentures, bonds, securities to the general public through stock market.
What are public shares?
Public Shares means the Ordinary Shares included in the Units issued in the Public Offering; (vi) “Trust Account” shall mean the trust account into which a portion of the net proceeds of the Public Offering and the sale of the Private Placement Warrants shall be deposited; (vii) “Transfer” shall mean the (a) sale of, ...
What is a stockholder liable for?
A stockholder is personally liable for the debts of the corporation. c. Stockholders’ acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation. d. Stockholders wishing to sell their corporation shares must get the approval of other stockholders. 5.
Which of the following is not characteristic of a corporation?
1. Which of the following is not characteristic of a corporation?#N#a. The financial loss that a stockholder may suffer from owning stock in a public company is limited.#N#b. Cash dividends paid by a corporation are deductible as expenses by the corporation.#N#c. A corporation can own property in its name.#N#d. Corporations are required to file federal income tax returns.#N#2. Characteristics of a corporation include#N#a. Shareholders who are mutual agents #N#b. Direct management by the shareholders (ow ners)#N#c. Its inability to own property#N#d. Shareholders who have limited li ability#N#3. One of the main disadvantages of the corporate form is the#N#a. Professional management#N#b. Double taxation of dividends#N#c. Charter#N#d. Corporation must issue stock#N#4. Under the corporate form of business organization#N#a. Ownership rights are easily transferred.#N#b. A stockholder is personally liable for the debts of the corporation.#N#c. Stockholders’ acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.#N#d. Stockholders wishing to sell their corporation shares must get the approval of other stockholders.#N#5. Those most responsible for the major policy decisions of a corporation are the#N#a. Management.#N#b. Board of directors.#N#c. Employees.#N#d. Stockholders.#N#6. Stockholders' equity#N#a. Is usually equal to cash on hand#N#b. Includes paid-in capital and liabilities#N#c. Includes retained earnings and paid-in capital#N#d. Is shown on the income statement#N#7. The price at which a stock can be sold depends upon a number of factors. Which statement below is not one of those factors?#N#a. The financial condition, earnings record, and dividend record of the corporation#N#b. Investor expectations of the corporation's earning power#N#c. How high the par value#N#d. General business and economic conditions and prospects#N#8. Which of the following accounts below is reported in the paid-in capital/stockholders' equity section of the corporate balance sheet?#N#a. Cash#N#b. Stock Dividends#N#c. Organizational Expenses#N#d. Preferred Stock#N#9. The excess of issue price over par of common stock is termed a (n)#N#a. Discount#N#b. Income#N#c. Deficit#N#d. Premium#N#10. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?#N#a. 40,000#N#b. 70,000#N#c. 50,000#N#d. 60,000
Is cash dividend deductible?
Cash dividends paid by a corporation are deductible as expenses by the corporation.c . A corporation can own property in its name.d. Corporations are required to file federal income tax. Question: 1.
