If a Group of Stockholders or Management Obtain All the Stock

question 102

Multiple Choice

If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves,this is referred to as:

• A)Capitalizing.
• B)Stock turning.
• C)Turning the equity.
• D)Taking the firm private.

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Definitions:

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments for changes in accounting policies, presented in the current period's equity section.

Retained Earnings Statement

A financial statement that outlines the changes in retained earnings for a specific period.

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the open market.

Voluntary Restriction

Voluntary restriction refers to limitations or constraints that an organization chooses to impose on itself, often related to its operations or the use of its assets, not mandated by external regulations.