Question

Wiley incorporates his business as Wiley Wire Corporation in Texas. He and his group of shareholders intend to make a profit from their sales of fencing wire. Wiley Wire Corporation is ________.a. a nonprofit corporation.
b. not a corporation.
c. an alien corporation.
d. a private corporation.

Answer 1

Answer:

d. a private corporation.

Explanation:

A private corporation is a limited company that is owned by a few numbers of shareholders.  The shares of a private corporation are not publicly traded in the securities exchanges, neither are they issued through an initial public offer.  Ownership of a private corporation is transferable but is restricted to the founders who, in most cases, are family members, close friends, or associates.

Wiley and the shareholders have a private corporation. Formation of a private corporation is through incorporation, as is the case of Wiley wire corporation. Private corporations are established with a profit motive. Ownership of Wiley wire corporation will be restricted to Wiley and the other shareholders.