Question

Miracle Vacuum, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufactur­ing and distributing a newly pat­ented appliance, (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

closely held corporation

Step-by-step explanation:

Closely held corporations:

• are private companies, whose shares are not publicly traded
• have a limited number of stockholders, the IRS establishes that 5 or less shareholders must control at least 50% of the stocks
• are subject to double taxation similarly to C corporations