Private vs Public Companies Quiz
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Questions and Answers

What is the largest asset of a privately held business?

  • Market share
  • Professional management
  • Exit window
  • Owner's primary asset (correct)
  • What is the most likely way to attract talent to a private company?

  • Global market share
  • Perpetual succession (correct)
  • Professional management
  • Quick exit window
  • What tool can help businesses understand the risks associated with different types of ownership?

  • The transfer spectrum chart (correct)
  • Market share
  • Professional management
  • Exit window
  • What is a potential effect of inflation on private companies?

    <p>It may create a separation between ownership and management.</p> Signup and view all the answers

    How does the number of employees a business has affect its risk profile?

    <p>It increases the risk.</p> Signup and view all the answers

    Study Notes

    • The privately held business is the owner's primary asset and largest asset.
    • The privately held business is the largest market in the US.
    • The privately held business is more important to the strength of the US economy than the public company.
    • Private companies are more likely to have an exit window that closes quickly than a public company.
    • Private companies are more likely to have a global market share professional management.
    • Private companies are less likely to have perpetual succession and attract talent than a public company.
    • Inflation will create a recession, making it harder for private companies to create separation between ownership and management.
    • The transfer spectrum chart is a tool that helps businesses understand the risks associated with different types of ownership.
    • Public companies are typically more risky than private companies, and investors are more likely to treat them as investments.
    • The recession may have caused some businesses to expand beyond their normal size, leading to increased risks.
    • The number of employees a business has affects its risk profile.

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    Description

    Test your knowledge on the differences between private and public companies with this quiz. Explore topics such as risks, market share, talent attraction, and the impact of economic factors.

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