A broadly held corporation has fewer and less stringent reporting and accounting requirements than a closely held corporation.

Question

Quizplus · Accepted Answer

Closely held corporations generally have fewer reporting and accounting requirements because they have fewer shareholders and are not publicly traded. Broadly held corporations, on the other hand, have many reporting and disclosure requirements to ensure transparency and protect the interests of their many shareholders.

A Broadly Held Corporation Has Fewer and Less Stringent Reporting