Public corporations are businesses whose stock is bought and sold on a stock exchange. This distinguishes them from private corporations, which have their stock bought and sold privately. Option A describes a partnership, not a public corporation, and option D describes a non-profit organization, which is again distinct from a public corporation.

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Public Corporations

Question 52

Multiple Choice

Public corporations:

A) are businesses owned by two or more people,each of whom is personally liable for the debts of the business.
B) are businesses whose stock is bought and sold on a stock exchange.
C) are businesses whose stock is bought and sold privately.
D) are setup for non-profit purposes.

Correct Answer: