Which of the following is untrue regarding closely held corporations?

A) Most corporations in the U.S. are closely held.
B) Shareholders frequently restrict the transfer of shares to prevent "outsiders" from obtaining the stock.
C) Shareholders usually have little voice in the management and control of the business.
D) Some states have enacted special legislation to accommodate the needs of closely held corporations.

Closely Held Corporations

Corporations that have a small number of shareholders and whose shares are not publicly traded, often managed by the shareholders.

Enacted Special Legislation

Laws that have been passed to address specific issues, often pertaining to a particular locality or group, rather than general or widespread concerns.

Transfer of Shares

The process of moving ownership of shares from one party to another, either through sale, gift, or inheritance, commonly documented by a stock transfer form.