A Corporation Whose Stock Is Traded on at Least One

question 36

Multiple Choice

A corporation whose stock is traded on at least one national securities exchange is known as a(n) corporation.

• A) private
• B) publicly held
• C) closely held
• D) eleemosynary

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Definitions:

Fair Value

The price at which an asset could be bought or sold or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest that is not based on the majority of voting rights.

Consolidation

The process of combining financial information from several departments or subsidiaries within a company into a single financial statement.

Controlling Financial Interest

A situation where an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.