Elaine and her friends want to start a business as a corporation. They want to keep their organization simple and not hold annual stockholders' meetings. Each member wants to participate in managing the business and share the profits. A(n) _____ would be the suitable option for them.

Question

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A statutory close corporation is a type of corporation where shareholders have limited liability but can participate in management and the corporation can limit the number of shareholders, making it ideal for small groups who want to manage the business together without the need for annual meetings. This option would suit Elaine and her friends' needs of keeping the business simple and allowing each member to participate in managing the business and share the profits.

Elaine and Her Friends Want to Start a Business as a Corporation