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OTE2601 Assignment 2 Due 7 June 2024
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ASSIGNMENT 02
QUESTION 1
Every entrepreneur has certain expectations and goals when choosing a business.
1.1 What is a close corporation in business? Give one examples.
A close corporation (CC) in business is a type of legal entity that is similar to a
partnership but has limited liability for its members. It is typically a small business
structure where the owners are involved in the day-to-day operations and
management. In a close corporation, the number of shareholders is limited, and the
shares are not publicly traded. One example of a close corporation could be a familyowned
restaurant
where
the
family
members
are
the
shareholders
and
actively
participate
in
running
the
business.
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