Which of the Following Is True for a Close Corporation

question 31

Multiple Choice

Which of the following is true for a close corporation?

• A)The shareholders are large in number.
• B)Shareholders usually live in different geographic areas.
• C)Only few of the shareholders are active in the business.
• D)There is no established market for the stock.

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Definitions:

Average Variable Costs

The variable cost (e.g., labor, raw materials) per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Average Total Costs

The per unit cost of production, calculated by dividing the total cost of production by the number of units produced.

Total-Cost Curve

A graph that depicts the total cost of producing different quantities of a good or service, considering both fixed and variable costs.

Increasing Rate

Describes a situation where a quantity or metric, such as inflation, interest rates, or population, is growing over time.