The available options are:
a) Required to file annual and quarterly financial statements
b) Filing requirement depends on the company’s assets and number of shareholders.
c) Not obligated to report to the SEC.
d) Must report significant business developments and file annual and quarterly financial statements.
Response:
d) Must report significant business developments and file annual and quarterly financial statements.
Clarification:
Companies that trade securities on a national exchange are mandated by law under the U.S. Security and Exchange Commission to disclose significant business developments and to submit annual and quarterly financial statements via Form 10-K and Form 10-Q, as stipulated by the SEC.
They achieve this by completing the Form 10-K for yearly statements and Form 10-Q for quarterly statements, detailing changes in the business, such as financial transactions, mergers, acquisitions, etc., on a routine basis.
Therefore, Fancorp is obliged to report significant business developments and must file both annual and quarterly financial statements.
