Question

Which of the following organizational forms is subject to the Securities and Exchange Commission (SEC) regulations?

1-Public corporation
2-Partnership
3-Sole proprietorship
4-Private corporation

Answer 1

A public corporation is subject to SEC regulations because it issues shares that are publicly traded, unlike sole proprietorships, partnerships, or private corporations.

Step-by-step explanation:

Among the different forms of business organizations, a public corporation is the one subject to the Securities and Exchange Commission (SEC) regulations. Unlike sole proprietorships, partnerships, or private corporations that are not publicly traded, a public corporation issues shares that are available for the public to buy and sell, thus falling under the scrutiny of the SEC to protect investors and maintain fair, orderly, and efficient markets.