Outstanding shares of stock of the Cattleman Corp.are held by seven shareholders,four from the Tate family,and 3 from the Anchustegui family.The Cattleman Corp.cannot be designated a close corporation because the shareholders are not from the same family.

Question

Quizplus · Accepted Answer

The statement is incorrect. A close corporation can be designated based on the number of shareholders, not just whether they are from the same family. A close corporation typically has a small number of shareholders who maintain a controlling interest in the company.

Outstanding Shares of Stock of the Cattleman Corp