Daniel,his parents,and three brothers own all the stock of their family farm corporation,and each person takes an active role in managing the enterprise.This corporation,which is taxed as a corporation,is most likely a(n)
A)S corporation.
B)professional corporation.
C)close corporation.
D)proprietorship.

Question

Quizplus · Accepted Answer

A close corporation is a type of corporation where the shares are held by a small group of people, often family members, and the corporation is managed by these individuals. The fact that each member of Daniel's family takes an active role in managing the enterprise indicates that they are operating as a close corporation. Additionally, the fact that they are taxed as a corporation suggests that they have incorporated the business. S corporations and professional corporations are both types of corporations with specific legal and tax requirements that are not mentioned in the scenario. Proprietorships are not corporations, and therefore cannot have stockholders.

Daniel,his Parents,and Three Brothers Own All the Stock of Their