Asked by Steven Gudiel on May 27, 2024
Verified
Cattle Ranch Inc. is a for-profit corporation that is owned by six shareholders who are members of the same family. Cattle Ranch is
A) an S corporation.
B) a close corporation.
C) a benefit corporation.
D) a public corporation and a private corporation.
Close Corporation
A private company characterized by a limited number of shareholders, and typically, more informal management and operations.
- Distinguish among varieties of corporations according to their location of incorporation and their objectives.
- Recognize the distinctive characteristics of closely held corporations and approaches to limit the power of majority shareholders.
Verified Answer
PK
Pranjal KanthMay 29, 2024
Final Answer :
B
Explanation :
A close corporation is typically characterized by a small number of shareholders, often from the same family, and does not offer its shares to the public, which aligns with the description of Cattle Ranch Inc.
Learning Objectives
- Distinguish among varieties of corporations according to their location of incorporation and their objectives.
- Recognize the distinctive characteristics of closely held corporations and approaches to limit the power of majority shareholders.
Related questions
Sweetwater Corporation Is Incorporated in Texas ...
With Regard to the Board of Directors of a Corporation,China ...
A Corporation Is A(n)________ Corporation in States in Which It ...
Under the Three Tiers of Corporate Power in ________, the ...
When General Incorporation Statutes First Emerged in the United States,they ...