Final answer:
A corporation with stock not traded on public exchanges and held by a few individuals is known as a closely held corporation. This differs from public corporations, which sell stocks publicly. Large private companies, such as Cargill and Mars, are examples of closely held corporations.
Step-by-step explanation:
A corporation is a business entity that is owned by shareholders and is characterized by having limited liability for the company's debts but allows them to share in its profits and losses. Corporations can be either private or public, depending on whether they offer their stock to the public. In the case of a corporation whose stock is not traded on national securities exchanges and is held by a small group of people, this type of corporation is known as a closely held corporation. Unlike public corporations, closely held corporations do not sell their stock to the general public and often have fewer shareholders, which allows for more direct control by its owners.
Examples of large private corporations with substantial annual sales that do not have publicly issued stock include firms like Cargill, the Mars candy company, and the Bechtel engineering and construction firm. These private corporations can be as diverse as a small law firm, which might be a sole proprietorship, or a larger firm owned as a partnership.