A corporation is considered to be closely held when:

Question

Quizplus · Accepted Answer

A corporation is considered to be closely held when only a few shareholders exist. This typically means that the shares are not publicly traded and are instead held by a small group of individuals or entities such as family members or a small group of investors. This type of corporation may also be referred to as a closely held company or a private company. The size of the geographic area in which the corporation operates and whether or not management also serves as the board of directors are not necessarily indicative of whether or not a corporation is closely held.

A Corporation Is Considered to Be Closely Held When