Which of the Following Would Not Be True of a Privately

question 125

Multiple Choice

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 a National securities exchange.
• C) It does not offer its shares for sale to the general public.
• D) It is usually smaller than a publicly held company.

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Definitions:

Incidental Expenses

Minor or secondary expenses that occur during the process of conducting business or performing a service.

Personal Property

Property that includes movable items such as furniture, cars, and investments, as opposed to real estate.

200% Declining-Balance Rate

A method of accelerated depreciation allowing for a double rate of depreciation on assets, compared to the straight-line method.

MACRS

The Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes that allows faster write-offs on property.