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Sir,
I have just finished the practice test for Chap 2, and just need some clarification on the answer (1 and 3 only). Statement 1 says: A sole traders’ financial statements are private; a company’s financial statements are sent to shareholders and are publicly filed.
-Couldn’t you have a private LLC? Where the financial statements are not publicly filed and not shared. I believe the only way companies are required to show their statements was if they were publicly filed.
Thanks!
Rachel
No.
Because all limited companies are separate legal entities, information from their financial statements have to be publicly available.
Public limited companies (plc’s) are companies whose shares are traded on the stock exchange, and they are required to publish much more information, but that is subject to the rules of the stock exchange.
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