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Which of the following examples describes a publicly held corporation?(1 point)

Responses

A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.
A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.

A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.
A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.

A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.
A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.

A local jewelry store is owned by its founders who hold but do not sell shares in the company.

7 answers

The example that describes a publicly held corporation is:

A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.

Publicly held corporations are those that sell shares to the public on a stock exchange, allowing anyone to buy ownership in the company.

Which of the following is a stock exchange in the United States?(1 point)
Responses

New York Stock Exchange
New York Stock Exchange

U.S. Public Investment Exchange
U.S. Public Investment Exchange

Securities and Exchange Commission
Securities and Exchange Commission

Universal Partnership Exchange

The correct response is:

New York Stock Exchange

The New York Stock Exchange (NYSE) is a prominent stock exchange in the United States where stocks and other securities are bought and sold. The other options listed are not stock exchanges.

Amelia has laid the groundwork for a fledgling business and is considering incorporating. Which of the following is a valid concern that she might have?(1 point)
Responses

Incorporating comes with an increase in liability compared to other business structures.
Incorporating comes with an increase in liability compared to other business structures.

Acquiring financing as a corporation will be much more challenging than it is for other business structures.
Acquiring financing as a corporation will be much more challenging than it is for other business structures.

The regulations will be more burdensome than in other business structures.
The regulations will be more burdensome than in other business structures.

The corporation will only last as long as she is able to work.

The valid concern that Amelia might have is:

The regulations will be more burdensome than in other business structures.

Incorporating typically involves more regulations, compliance requirements, and formalities compared to other business structures like sole proprietorships or partnerships. The other options are not accurate concerns regarding incorporation. For instance, incorporating generally limits personal liability, can actually make financing easier through the sale of stock, and a corporation can last indefinitely, regardless of the involvement of its founders or original owners.

What are the primary differences between a bond and a stock?(1 point)
Responses

Stocks are contracts that specify duties to the corporation, while bonds are units of ownership in a corporation.
Stocks are contracts that specify duties to the corporation, while bonds are units of ownership in a corporation.

Stocks are units of ownership in a corporation, while bonds are contracts that specify duties to the corporation.
Stocks are units of ownership in a corporation, while bonds are contracts that specify duties to the corporation.

Stocks are certificates debt, while bonds are units of ownership in a corporation.
Stocks are certificates debt, while bonds are units of ownership in a corporation.

Stocks are units of ownership in a corporation, while bonds are certificates of debt.

The correct response is:

Stocks are units of ownership in a corporation, while bonds are certificates of debt.

This accurately reflects the primary differences: owning stock means you own a portion of the company, while bonds are a form of debt investment where you loan money to the corporation and receive interest payments.