Definition
Close corporation is the type of corporation with limited shareholders and restricted stock transfers. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Close corporation is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Type of corporation with limited shareholders and restricted stock transfers.
Common mistake
Using Close corporation as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Client
Customer or organization that receives services from a business or professional.
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Client-server
Computing architecture where clients request services from central servers.
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Closed-end fund
Investment fund with a fixed number of shares that trade on exchanges.
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Closing
Final step in completing a real estate or business transaction.
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