A "company town" is one in which:

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A "company town" is a town that is basically owned and operated by a single company, which usually employs the majority of the town's residents and owns most of the town's buildings and infrastructure. The company often has significant influence over local government and economic activity in the town. While some employees may choose to live in company-owned housing, it is not necessary for all employees to live within the confines of the town. Option A is too limiting, option C is too passive, and option D is too controlling.

A "Company Town" Is One in Which