Question

When Russell turned 21-years-old, his father gave him a management position at the family's hardware store. He explained to Russell that his family had owned and operated this store for five generations, and that someday, he would be able to pass it on to his children. He made Russell promise that he would never sell the company or any of its stock or hire managers from outside the family. This business is aa. private corporation.b. public corporation.c. sole proprietorship.d. limited partnership.e. cooperative.

Answer 1

Answer:

A. Private corporation.

Explanation:

Private corporation: It is type of business corporation which is privately owned by individual or company or group of small invenstor and the motive these company is to earn profit. The stocks of these companies are not freely traded in the open market, however, ownership of these company remain with few individuals, who might be closelt related or family member. The operation of these company will remain same as a regular corporation.

In the given case, Hardware store was privetly owned by Russell´s family and they don´t hire manager from outside, neither they sell it to any outsider. Therefore, this business is an private corporations.