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:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Defined Benefit Plans

Pension plans where the employer promises a specified pension payment upon retirement, based on factors like salary and years of service.

Discount Rate

The discount rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

90-day Note

A short-term debt instrument that matures in 90 days, often used in business for financing or investment purposes.