question archive Which of the following statements are true about closely held corporations a
Which of the following statements are true about closely held corporations a
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Which of the following statements are true about closely held corporations
a. The shares cannot be traded freely with the public
b. They are heavily reliant on a well-crafted shareholder agreement
c. All decisions must be unanimous
d. The are generally small businesses but can be large businesses too
e. The are regulated in the same manner as broadly held corporations
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Option A
Explanation: A closely held corporation refers to a corporation where only few individuals hold the majority of the shares. It is also a kind of private corporation because its shares cannot be traded publicly on a stock exchange. Its shareholders are a small number of investors who may be family members or business partners etc.
