Asked by Sarah Gaines on May 13, 2024
Verified
Which of the following best describes a closely held corporation?
A) The corporation's shares are owned by many individuals who can buy and sell their interest in the stock market
B) The corporation's shares are owned by a few individuals who are associated with the firm's management.
C) The corporation's shares are owned by many individuals who are associated with the firm's management.
D) Closely held corporations are not legally allowed to form in Canada.
Closely Held Corporation
A corporation owned by a small group of people who might also be involved in its management, with shares that are not publicly traded.
Stock Market
A public market for the trading of company stock and derivatives at agreed prices.
- Identify and describe different types of corporations, including closely held corporations.
Verified Answer
AP
Ashley ParksMay 16, 2024
Final Answer :
B
Explanation :
A closely held corporation is also known as a private corporation, where the ownership of shares is limited to a small group of people who are typically involved in the management of the company. This means that the shareholders usually have a significant influence on the company's decision-making processes.
Learning Objectives
- Identify and describe different types of corporations, including closely held corporations.
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