When Founding Members of Mike & Sons Wanted to Regain

question 12

Multiple Choice

When founding members of Mike & Sons wanted to regain family control of the business, they changed the company ownership from publicly held to _____, in order to control and manage corporate activities.

• A) limited corporations
• B) closed corporations
• C) preferred corporations
• D) restricted corporations

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Definitions:

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders; involves management of resources, production, and distribution of goods and services.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not directly related to a company's main operations.

Financing Activities

Transactions related to raising capital or repaying investors, including issuing equity, borrowing funds, and repaying debt.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.