In a closely held corporation, the majority shareholders:
A) have no influence on management.
B) elect the members of the board of directors.
C) cannot be employed by the corporation.
D) have the same impact on policy as minority stockholders.
E) bring upon derivative suits on behalf of the corporation.

Question

Quizplus · Accepted Answer

Unlike the situation with a large, publicly held corporation, one shareholder (or at least a small group of shareholders) may be able to control a closely held corporation. This can result because this individual (or the group) can own an actual majority of the issued shares. This majority can control the election of a board of directors.

In a Closely Held Corporation, the Majority Shareholders