Thirteen Sorority Sisters Start Pro Canine Walkers, Inc.
Thirteen Sorority Sisters Start Pro Canine Walkers, Inc.
Thirteen sorority sisters decide to start a dog-walking business. They incorporate under the name Pro Canine Walkers, Inc., and advertise their services throughout the city in newspapers and on flyers they post. All stock is owned by the 13 principals, and none is offered to anyone outside the 13. This corporation would be classified as a:
A) privately held corporation.
C) privately held public professional corporation.
D) privately held public corporation.
Question:
Which classification does the corporation, Pro Canine Walkers, Inc., fall under?
Answer:A) privately held corporation.
Explanation:In the given example, the most appropriate option is a privately held corporation as the stock is owned by the 13 principals. It is not offered to anyone other than these 13 principals, which means they do not offer it to the public at large.
It is different from the publicly held corporation as the shares or the stock of the business organization are offered to the general public. But in this case, it is offered only to the 13 principals.
Hence, other options are wrong except A.