The Statutory Close Corporation Supplement to the MBCA permits a corporation with ________ shareholders to elect to become a close corporation.

A) fewer than 100
B) 50 to 75
C) 75 to 100
D) fewer than 50

Statutory Close Corporation Supplement

A legal provision that allows a closely held corporation to operate with fewer formalities and more flexibility than is typical under corporate law.

MBCA

Model Business Corporation Act, a model set of laws prepared by the Committee on Corporate Laws of the American Bar Association to guide states in the preparation of their corporate statutes.

Close Corporation

A type of business entity with a limited number of shareholders and restricted stock trading, often operated by family members or close associates.