A corporation is considered to be closely held when:

Question

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A closely held corporation is one in which a small number of shareholders hold all or a majority of the shares, and often have close relationships with each other. This is in contrast to a widely held corporation, in which shares are held by a large number of shareholders and the stock is traded publicly. The other choices (B, C, and D) do not accurately describe whether a corporation is closely held or not.

A Corporation Is Considered to Be Closely Held When