close corporation

Definition of "close corporation"
  1. A corporation typically run by a few individuals, often family members, with a limited number of shareholders, governed by state law and functioning more informally than standard corporations
How to use "close corporation" in a sentence
  1. The local grocery store is a close corporation, with only family members as shareholders.
  2. In a close corporation, decisions can be made without needing a formal board meeting.
  3. Due to the limited number of shareholders, a close corporation allows for more informal operations.

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