How Does the Management Structure of a Closely Held Corporation

question 49

Essay

How does the management structure of a closely held corporation differ from that of a publicly traded corporation?

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Definitions:

Sarbanes-Oxley Act Of 2002

A U.S. federal law enacted in response to a number of major corporate and accounting scandals, aiming to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises.

Corporate Accountability

Refers to a corporation's responsibility towards stakeholders and the public to conduct business ethically, sustainably, and lawfully.

Strict Disclosure Requirements

Regulations mandating that certain information must be fully and accurately disclosed to relevant parties, often in financial contexts.

Federal Or State Securities Laws

Regulations established by federal or state governments to govern the sale, purchase, and issuance of securities, aiming to protect investors and maintain market integrity.