Dependable Appliances, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufactur?ing and distributing a newly pat?ented kitchen appliance, (2) is owned by five share?holders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Dependable is

Question

Quizplus · Accepted Answer

Dependable Appliances, Inc. is a close corporation because it is owned by a small number of shareholders and has made no public offering of its shares. It is subject to double taxation, which rules out the possibility of it being an S corporation. It is also not a nonprofit corporation or a professional corporation, as it is a for-profit corporation that manufactures and distributes a patented appliance.