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.

Question

Ashley Parks · Accepted Answer

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.

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