Which of the following statements about private corporations is true?
A)Private corporations trade on the stock exchange.
B)Private corporations have only one shareholder.
C)Private corporations are the same as proprietorships.
D)Private corporations' shares are not available for sale unless the shareholders agree.

Question

Quizplus · Accepted Answer

Private corporations are not publicly traded, and their shares are not available for sale to the general public unless the shareholders agree. They may have multiple shareholders, but they are not required to disclose their financial information to the public like public corporations. Proprietorships are different from private corporations in that they are owned by a single individual and do not have separate legal status.

Which of the Following Statements About Private Corporations Is True