Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best defines a public corporation?

A corporation whose shares are traded on a public stock exchange and are available for purchase by the general public.

A corporation owned and operated by a single individual.

A corporation whose shares are owned by a small group of private investors and are not available to the general public.

A corporation that is exempt from paying federal income taxes.

Previous problemNext problem

Verified step by step guidance

Understand the definition of a public corporation: A public corporation is a company whose shares are traded on a public stock exchange and are available for purchase by the general public. This is a key characteristic that distinguishes it from private corporations.

Eliminate the incorrect options: Review each option provided and compare it to the definition of a public corporation. For example, a corporation owned and operated by a single individual does not meet the criteria of a public corporation.

Analyze the option about private investors: A corporation whose shares are owned by a small group of private investors and are not available to the general public is a private corporation, not a public corporation.

Consider the tax-exempt option: A corporation that is exempt from paying federal income taxes is not necessarily a public corporation. This could refer to a nonprofit organization or another type of entity.

Select the correct answer: Based on the definition and process of elimination, the correct answer is the option that states a public corporation is one whose shares are traded on a public stock exchange and are available for purchase by the general public.