Final answer:
The true statement about privately held corporations is that they often use the unanimous consent resolution to issue stock as they enjoy a more consolidated ownership, allowing for simpler decision-making processes.
Step-by-step explanation:
Regarding privately held corporations, they are typically owned and managed by an individual or a small group rather than being publicly traded entities. Such companies often exhibit more flexibility compared to their publicly traded counterparts. When it comes to the options provided, the correct statement about privately held corporations is:
A. They often use the unanimous consent resolution to issue stock. This is because the ownership of a private corporation is concentrated among fewer individuals, which allows for more straightforward and unanimous decision-making processes, such as issuing new stock or making significant corporate decisions.
Privately held firms also do not have to comply with rigorous corporate formalities that are characteristic of publicly traded companies, which must adhere to strict regulations such as those imposed by the Securities and Exchange Commission (SEC). Therefore, they can operate with more flexible internal procedures and without the need to adhere to the same level of corporate governance and disclosures as public companies.