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:

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.

Future Costs

Costs that are expected to be incurred in upcoming periods.

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Alternatives

Different options or choices available in a decision-making scenario.