According to SEC Rules, a Company That Has Fewer Than

question 49

Multiple Choice

According to SEC rules, a company that has fewer than 500 shareholders and does not allow its securities to be openly traded is called a:

• A) private company
• B) publicly traded company
• C) publicly held company
• D) private enterprise
• E) semi-private company

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Definitions:

Consideration

The benefit, interest, or value that must be exchanged between parties in a contract to make it legally binding.

Liable

Legally responsible for an action or outcome, often involving the obligation to make restitution or compensation.

Voluntary Basis

Participation or action taken by an individual or entity without coercion, typically without expectation of payment.

Consideration

An item of worth traded between entities within a contractual agreement, rendering the contract enforceable by law.