logo
Ask Question

Asked by Mackenzie Vatter on May 14, 2024

verifed

Verified

A corporation whose shares are held by relatively few persons is a close corporation .

Close Corporation

A type of business corporation that is privately held, with a limited number of shareholders and restrictions on share transfers.

Shares

Units of ownership interest in a corporation or financial asset, providing a proportionate claim on the company's assets and profits.

Few Persons

A term not widely used in a specific financial or legal context; generally, it refers broadly to a small number of individuals.

  • Understand the principles of close and benefit corporations, including their distinct features.
verifed

Verified Answer

KS
Kamen Sentai

May 17, 2024

Final Answer :
True
Explanation :
A close corporation is characterized by its shares being held by a small number of people, often with restrictions on the transfer of shares to keep the corporation closely held.

Related questions

In Many States, Close Corporations Have More Flexibility in Determining ...

Because a Close Corporation Is One Whose Shares Are Held ...

Analyze the Benefit Corporation (B-Corp)and Describe Its Purpose and Role ...

In Corporations That Are Said to Be Widely Held, No ...

Characteristics of a Corporation Include ...