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CTP · Question #48

(Topic 1) Company A is a large public company with annual revenue of $1.2 billion and high fixed costs. Its stock is listed on the New York Stock Exchange. Company B is a mid-sized company with…

The correct answer is A. Company A has greater reporting requirements and more marketable stock than. See the full explanation below for the reasoning.

Question

  • (Topic 1)

Company A is a large public company with annual revenue of $1.2 billion and high fixed costs. Its stock is listed on the New York Stock Exchange. Company B is a mid-sized company with annual revenue of $100 million and low fixed costs. Its stock is listed on the NASDAQ. Which of the following statements is MOST LIKELY to be true when comparing Company A and Company B?

Options

  • ACompany A has greater reporting requirements and more marketable stock than
  • BCompany A has greater reporting requirements and less marketable stock than
  • CCompany B has greater reporting requirements and more marketable stock than
  • DCompany B has greater reporting requirements and less marketable stock than

How the community answered

(65 responses)
  • A
    74% (48)
  • B
    14% (9)
  • C
    8% (5)
  • D
    5% (3)

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