Question

Miracle Mobile Devices, Inc., is a private, for-profit corporation that

(1) was formed for the purpose of manufactur­ing and distributing a newly pat­ented tablet,
(2) is owned by five share­holders,
(3) is subject to double taxation, and
(4) has made no public offering of its shares. Miracle is_______.

Answer 1

Answer:

B. A close corporation

Explanation:

Based on the information provided within the question it can be said that Miracle Mobile Devices Inc. is a closed corporation. This term refers to company that is not a public corporation and does not surpass a predefined number of shareholders or stakeholders. Which both statements 2 and 4 defend this declaration.