What distinguishes a public corporation?

A public corporation is characterized primarily by its ability to have its shares bought and sold on a stock exchange. This feature allows for public investment, as anyone can purchase shares, which contributes to the corporation's ability to raise capital from a wide array of investors. The trading of these shares on an exchange provides liquidity for investors, allowing them to enter and exit positions in the corporation easily.

The presence of shares being publicly traded also means that public corporations are subject to regulatory requirements that promote transparency and accountability to shareholders, often including regular financial reporting and disclosures. This openness helps to build investor trust and confidence in the company.

Other options fail to capture the essence of a public corporation. A single shareholder refers more to private companies or other ownership structures, while government ownership indicates a public sector entity rather than a public corporation in the market sense. Similarly, the description of providing loans rather than equity investments does not relate to the nature of what defines a public corporation, as public corporations typically focus on offering equity to investors through stock. Thus, the key distinguishing feature remains the ability to trade shares on the stock exchange.