Which of the following is true about publicly held business organizations?
A) These organizations are owned only by a few persons.
B) Decisions regarding selection of appropriate organizational forms are usually limited to these organizations.
C) Shareholders of such organizations can transfer their ownership without interfering with the organization's management.
D) A family-operated business is a classic example of a publicly held business organization.
E) The status of a shareholder in these organizations limits their liability for torts and shareholders mostly forgo their limited liability for cosigning contracts.

Question

Quizplus · Accepted Answer

When a business is publicly held by a large number of owners, the form of organization usually is a corporation. The reason for this corporate form being used is that shareholders can transfer their ownership without interfering with the organization's management.

Which of the Following Is True About Publicly Held Business