Mountain Outfitters is a large company that manufactures durable outdoor clothing. The company has stock that anyone can buy, sell, or trade, but since it is a large company, its stockholders are far removed from its management. What type of business is this?

Question

Quizplus · Accepted Answer

This is a public corporation because its stock can be bought, sold, or traded by anyone. In large public corporations, the stockholders are often far removed from the management of the company. However, publicly owned corporations must disclose financial information to the public under specific laws that regulate the trade of stocks and other securities.

Mountain Outfitters Is a Large Company That Manufactures Durable Outdoor