Which of the Following Is True of a Closely Held

question 30

Multiple Choice

Which of the following is true of a closely held corporation?

• A) It is a governmental organization.
• B) It is a corporation not organized for profit.
• C) It is often called a municipal corporation.
• D) The stock in a closely held corporation is widely held.
• E) The shareholders in a closely held corporation are fewer in number.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Short-Term Investments

Assets that are expected to be converted into cash or sold within one year or the operating cycle, whichever is longer.

Internal Auditors

Professional auditors who are employed by an organization to perform auditing and analysis of its operations, systems, and financial activities, ensuring compliance and identifying improvements.

Internal Control Elements

Components of a framework designed to safeguard assets, ensure financial reporting accuracy, promote operational efficiency, and encourage adherence to policies.