Asked by Betty Hicks on May 09, 2024
Verified
Which of the following would not be true of a privately held corporation?
A) It is sometimes called a closely held corporation.
B) Its shares are regularly traded on the Toronto Stock Exchange.
C) It does not offer its shares for sale to the general public.
D) It is usually smaller than a publicly held company.
Privately Held Corporation
A privately held corporation is a business entity owned by private investors, shareholders, or company members, and not publicly traded on stock exchanges.
Toronto Stock Exchange
Canada's largest stock exchange, located in Toronto, Ontario, where stocks, bonds, and other securities are bought and sold.
Public
The general population or community at large, often referenced in the context of public companies, public offering, or information accessibility.
- Expose the distinct characteristics and rights that come with corporate ownership, including the aspect of liability, the capacity for share transferability, and the effect of engaging in share exchanges.
Verified Answer
NM
Nidhi MishraMay 16, 2024
Final Answer :
B
Explanation :
Privately held corporations do not have their shares traded on public stock exchanges like the Toronto Stock Exchange. Their shares are owned privately and are not available to the general public.
Learning Objectives
- Expose the distinct characteristics and rights that come with corporate ownership, including the aspect of liability, the capacity for share transferability, and the effect of engaging in share exchanges.