close corporation
Học thuậtThân thiện
Definition
- Noun:
- A corporation owned by a few people; shares have no public market: A "close corporation" is a type of business entity whose ownership is restricted to a small number of shareholders, often members of a family or a small group of associates. Its shares are not publicly traded on a stock exchange.
Usage Examples
- Noun:
- The family business was structured as a close corporation to maintain control within the family.
- Because it is a close corporation, its shares cannot be purchased by the general public.
Advanced Usage
- "to operate as a close corporation": to function under the legal and operational structure of a privately held corporation with a limited number of shareholders.
- They chose to operate as a close corporation to avoid the reporting requirements of a public company.
Variants and Related Words
Closed corporation (n): Another term for "close corporation," with the same meaning.
- The firm is a closed corporation, so investment opportunities are limited to a select few.
Privately held company (n): A broader term for a company whose shares are not publicly traded; a close corporation is a specific type of privately held company.
- Many tech startups begin as privately held companies before considering an IPO.
Synonyms
- Private corporation: A corporation that does not offer its shares to the public.
- Closely held corporation: A corporation with a small number of shareholders, similar to a close corporation.
Related Phrases
- "closely held": Describes a corporation or business owned by a small number of people.
- The business remains closely held, with all shares owned by the founders.
Related Idioms
Noun
- a corporation owned by a few people; shares have no public market