Why is the validity and reliability of financial disclosures of limited importance in the People’s Republic of China (PRC)?
A. China has no corporations with publicly traded stock.
B. The government owns all of the corporate stock traded in the PRC.
C. Most of the stock purchased in the PRC is held for only a short period of time.
D. Most of the stock is rated by the government of the PRC in terms of its quality.
Answer:C
Why is the validity and reliability of financial disclosures of limited importance in the People’s Republic of China (PRC)?
A. China has no corporations with publicly traded stock. B. The government owns all of the corporate stock traded in the PRC. C. Most of the stock purchased in the PRC is held for only a short period of time. D. Most of the stock is rated by the government of the PRC in terms of its quality.