Final answer:
True, publicly owned corporations with more than $5 million in assets must provide an annual stockholders' report as mandated by the SEC. This requirement aids in ensuring transparency for investors regarding the company's financial performance and strategic direction.
Step-by-step explanation:
The statement that publicly owned corporations with more than $5 million in assets are required by the Securities and Exchange Commission (SEC) to provide their stockholders with an annual stockholders’ report is true. The Securities and Exchange Commission mandates that public companies disclose certain information to their shareholders to ensure transparency and to aid investors in making informed decisions.
Such public firms are owned by shareholders, who have limited liability for the company's debts, but share in its profits and losses. Public companies might have a large number of shareholders, from thousands to millions, and to manage their interests, a board of directors is elected. Shareholders receive the right to vote for these directors, with the number of votes proportional to the amount of stock owned. Regular reporting, including the annual stockholders' report, is not just a regulatory requirement but also an essential tool for shareholders to assess the company's performance and make decisions regarding their investments.