Which of the Following Would Not Be True of a Privately

question 136

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 the New York Stock 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:

Marginal Revenue

The supplementary income a company accrues from the sale of one additional unit of a product or service.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, representing the average cost per unit of output.

Profit-Maximizing Rule

A principle that states a firm reaches its highest profit when its marginal cost equals its marginal revenue.

Marginal Revenue

The revenue increase from the sale of one more unit of a product or service.