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Private vs Public Companies Quiz

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A tool to measure the economy (correct)

A tool to measure the number of businesses in the market

A tool to measure the size of businesses in the market

A tool to measure the risk profile of a company

It is typically more expensive to buy

It is typically larger and more diversified

It is typically owned by the company’s employees, shareholders, or founders (correct)

It is typically easier to separate ownership and management

It is harder to attract new investors

It is harder to sell

It is more expensive to buy

It is harder to separate ownership and management (correct)

<p>Millions</p> Signup and view all the answers

<p>A market with businesses with five million or more in revenue</p> Signup and view all the answers

The number of businesses in the market is millions, and there are fewer as you go up the pyramid.
The transfer spectrum chart is a valuable tool for understanding how the economy works, and it's been accurate for the last 40 years.
The middle market is a market with businesses with five million or more in revenue.
Private companies have different risk profiles than public companies.
A privately held business is owned by the company's employees, shareholders, or founders.
This type of business is typically much smaller and less diversified than a publicly traded company.
Private companies are often more expensive to buy than public companies, because the former is typically trading at a higher PE ratio.
The main challenge for a privately held business is that it is harder to separate ownership and management, which can make it more difficult to sell or attract new investors.