Which of the following is a primary difference between a privately held corporation and a public corporation?(1 point)

Question

Responses

Shares of public corporations are traded on stock exchanges.
Shares of public corporations are traded on stock exchanges.

Privately held corporations may issue stock.
Privately held corporations may issue stock.

Shares of privately held corporations are traded on stock exchanges.
Shares of privately held corporations are traded on stock exchanges.

Public corporations may issue stock.

Answer 1

The primary difference between a privately held corporation and a public corporation is:

Shares of public corporations are traded on stock exchanges.

This indicates that public corporations are subject to regulations and reporting requirements that privately held corporations are not, as their shares are available for the general public to buy and sell.