Question

To make, sell, and distribute candy that Ethan has developed, he incorporates his business and designates his sister and brother as corporate officers. He sells them shares of stock. No shares are offered to the public. The three agree that if any one of them decides to leave the business, the others will buy that person's stock. Ethan’s corporation is most likely:

Answer 1

Answer:

A close corporation.

Explanation:

A closed corporation is a company whose shares are held by a chosen few people who are generally closely connected with the business.