A Corporation Whose Stock Is Owned by Relatively Few People

question 45

Multiple Choice

A corporation whose stock is owned by relatively few people and is not traded openly in stock markets is called a(n) ____________ corporation.

• A)public
• B)private
• C)partnership
• D)common
• E)preferred

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Definitions:

Interest Components

The different parts that make up the total interest calculation, including the principal amount, interest rate, and time period.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, not including interest or profits.

Simple Interest

Interest assessed only on the base amount, or on whatever portion of the base amount has not been settled.

Interest

Payment made for the use of borrowed money, calculated as a percentage of the principal sum.