Close Corporation (Noun)
Meaning
A corporation owned by a few people; shares have no public market.
Classification
Nouns denoting groupings of people or objects.
Examples
- The company was organized as a close corporation to allow the family to maintain control of its operations.
- After the IPO, the close corporation was no longer a tightly held family business.
- In a close corporation, the shareholders usually work together to manage the day-to-day activities of the business.
- The close corporation was facing financial difficulties, and it was clear that some of the shareholders would need to invest more money.
- Unlike a publicly traded company, a close corporation typically does not have to disclose its financial information to the public.