Question

Solid Appliances, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufacturing and distributing a newly patented kitchen appliance, (2) is owned by five shareholders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Solid Appliances is
a. an S corporation.
b. a close corporation.
c. a nonprofit corporation.
d. a professional corporation.

Answer 1

Answer:

b. a close corporation. 

Explanation:

A closed corporation is a corporation in which the shares of the company aren't publicly traded. Shares are held by few people, they are usually family members or mangers of the business. A closed corporation is taxed like a typical corporation and has limited liabilities.

A s corporation is a type of corporation where shares are held by few people. S corporations are taxed like a partnership- they are taxed once.

A non profit corporation is set up for purposes other than to make profit.

I hope my answer helps you