Asked by Ranjani Ramaswamy on May 31, 2024
Verified
A broadly held corporation has fewer restrictions on it than a closely held corporation.
Broadly Held Corporation
A corporation with a large number of shareholders, spreading ownership widely among individuals.
Closely Held Corporation
A corporate entity characterized by a small group of shareholders, often with family members holding a majority of the stock.
- Outline the limitations on the transferability of shares within privately held firms.
Verified Answer
PM
Patrick McMahonJun 05, 2024
Final Answer :
False
Explanation :
A closely held corporation typically has more restrictions on the transfer of shares and operations to maintain its closely held status, whereas a broadly held corporation, with many shareholders, operates under less restrictive conditions regarding share transfers and ownership.
Learning Objectives
- Outline the limitations on the transferability of shares within privately held firms.