Which of the Following Statements Is True of Publicly Held

question 37

Multiple Choice

Which of the following statements is true of publicly held business organizations?

• A) Publicly held organizations are owned only by a few persons.
• B) Publicly held organizations are only owned by the government.
• C) Shareholders of publicly held organizations can transfer their ownership without interfering with the organization's management.
• D) A family-operated business is an example of a publicly held business organization.
• E) Publicly held organizations are free from all legal liabilities to its shareholders, which is the primary reason for this corporate form being used.

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Definitions:

Demand Shock

An event that affects the demand for goods and services in the economy.

Money Supply

The sum of all financial assets present in an economy at a given time, encompassing cash, coins, and the amounts in checking and savings accounts.

Government Spending

Expenditures made by public authorities on goods, services, and public works, which can influence economic activity.

Defensive Industry

Industries that are relatively unaffected by economic cycles and fluctuations, such as utilities and consumer staples, because their products are always in demand.