A(n)________ is a corporation where the outstanding shares of stock and managerial control are held by fewer than ________ shareholders.

Question

Quizplus · Accepted Answer

A close corporation is a corporation in which the outstanding shares of stock and managerial control are held by a small group of shareholders, usually 50 or fewer. Other choices are not accurate as an S corporation can have up to 100 shareholders, an alien corporation has foreign ownership, and a shell corporation is usually inactive and used for deceptive purposes.

A(n)________ Is a Corporation Where the Outstanding Shares of Stock