A Private Corporation Is a Corporation Whose Stock Is Owned

question 101

True/False

A private corporation is a corporation whose stock is owned by relatively few people and is not traded openly in the stock market.

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Definitions:

Valuation Techniques

Methods and approaches used to determine the fair value of an asset, liability, or a company, based on assumptions of future cash flows, market trends, or comparative assets.

Fair Value Approach

An accounting method that measures assets and liabilities at estimates of their current market value rather than historical cost.

Quoted Prices

The prices of securities that are publicly listed and available for investors to buy and sell.

Active Markets

Markets where transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.