Answer:
A. There exists an implicit contract based on trust between society and the public stock company
Explanation:
A public stock company is a type of company where members of the public can become shareholders or owners of the company by acquiring shares of the company.
A public stock company is usually run by a board of directors elected by shareholders.
There is an implicit trust between society and public trust companies that the public trust companies are acting in the best interest of members of the public and shareholders.
Profits of the public stock company distributed to shareholders are known as dividends. It's not all the time dividends are declared.
Public stock companies are required by law to disclose yearly financial statements.
Due to the high cost of capital required to run a company, public stock companies are usually important in developing economies.
I hope my answer helps you.
