California PTA Laws Practice Exam

Can physical therapists own shares in multiple corporations?

1. No, only one corporation is permitted

2. Yes, they can own shares in more than one corporation

3. It depends on the size of the corporations

4. Yes, but only if the corporations are in different professions

The correct answer is: Yes, they can own shares in more than one corporation

Physical therapists are permitted to own shares in multiple corporations under California law, which allows for this level of ownership without restriction to just one entity. This is crucial for physical therapists who may wish to diversify their investments or engage in various business activities that complement their practice. Owning shares in more than one corporation can enable physical therapists to invest in different areas related to healthcare, rehabilitation, or even unrelated fields, provided they adhere to the legal regulations governing ownership and practice. This flexibility encourages professional growth and broadens business opportunities, aligning well with the dynamic nature of the healthcare industry. Other options suggest limitations or conditions that do not reflect California's statutes regarding corporate ownership by physical therapists. There is no restriction stating that they can only own shares in one corporation, nor is there a health profession-specific limitation placed on ownership in multiple entities.