What Makes a Publicly Held Corporation Different from a Public

question 55

Multiple Choice

What makes a publicly held corporation different from a public corporation?

• A) A publicly held corporation has many shareholders rather than being a corporation owned by a governmental entity.
• B) A publicly held corporation is entitled to limited liability,but a public corporation is not.
• C) A publicly held corporation must have a charitable purpose,but a public corporation need not have a charitable purpose.
• D) They are two terms that have the same meaning.

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Definitions:

Years

Units of time that represent a period of approximately 365 or 366 days, based on the Earth's orbit of the sun.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

Discount Rate

The interest rate by which future cash flows are devalued to their present worth in a DCF analysis.

Cash Flows

represent the net amount of cash and cash-equivalents being transferred into and out of a business.