Which of the Following Statements Is True Regarding Employee-Owned Corporations

question 138

Multiple Choice

Which of the following statements is true regarding employee-owned corporations?

• A) The number of employee-owned corporations is declining in North America.
• B) Employee-owned corporations may not publicly trade their stock.
• C) Employees buy shares of stock in the company that employs them.
• D) Stock prices in employee corporations typically decrease.

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Definitions:

Sales Receipts

Documents that evidence the sale of goods or services and the payment received for those sales.

Bank Statements

Monthly or quarterly documents issued by a bank detailing all transactions in a customer's account.

Cash Dividends

Payments made by a corporation to its shareholders, typically out of its earnings, as a distribution of profits.

Income Statement

An income statement is a financial report that details a company's revenues and expenses over a specific period, culminating in a net income or loss to show the company's financial performance.