Question

To make, sell, and distribute candy that Ethan has developed, he incorporates his business and designates his sister and brother as corporate officers. He sells them shares of stock. No shares are offered to the public. The three agree that if any one of them decides to leave the business, the others will buy that person's stock. Ethan’s corporation is most likely _______

Answer 1

Ethan’s corporation is most likely a private company or a close corporation.

Step-by-step explanation:

A private company is a privately owned company. It is a firm that is owned by a non-governmental organization or few shareholders or the members of the company that do not trade the company's stock or shares to the public on the stock market exchange. The shares of a private company is traded or exchanged privately. Such a company is also known as a close corporation.

Therefore, Ethan’s corporation is most likely a private company or a close corporation.