Bart Inherited an Interest in an Open Publicly Traded Corporation

question 13

Multiple Choice

Bart inherited an interest in an open publicly traded corporation shortly after he graduated from high school.He has now graduated from college and would like to sell his ownership in order to purchase a house.Which of the following best describes the sale process?

• A) Ease of transfer of ownership is one of the benefits of corporate ownership therefore he should have no difficulty selling his ownership interest.
• B) Difficulties associated with the transfer of ownership of corporate ownership are one of the disadvantages to forming a business as a corporation,therefore he will have difficulty selling his ownership interest.
• C) If the corporation is an S corporation he may have no difficulty selling his ownership interest in the corporation.
• D) Since this is a publicly traded corporation,he will have difficulty selling his stock.

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Definitions:

Unadjusted Trial Balance

A preliminary report that lists all account balances within the company's ledger before adjustments are made for the preparation of final financial statements.