Question

what type of corporation sells millions of shares and must provide complete information about its earnings, assets, and debts?
limited
\c\
\s\
private
question 10
5 pts
the american red cross is an example of a(n) ________ corporation.
\s\
hybrid
nonprofit
\c\

Explanation:

• For the first question:
• A “C” corporation can sell millions of shares and is required to provide complete information about earnings, assets, and debts. Limited is too broad a term. An “S” corporation has limitations on the number of shareholders (usually 100 or fewer). A private corporation does not sell shares to the public.
• For the second question:
• The American Red Cross is a nonprofit corporation. Its purpose is to provide humanitarian services rather than to make a profit for shareholders. An “S” or “C” corporation is for - profit. A hybrid corporation is not the correct classification for the Red Cross.

Answer:

1. B. “C”
2. C. nonprofit