Privately Held Corporation for Dummies
noun
What does Privately Held Corporation really mean?
Hey there! Let's talk about what "Privately Held Corporation" means. Don't worry, I'll explain it in a way that makes sense and is easy for you to understand. So, have you ever heard the word "corporation" before? It's like a big company that's run by a group of people.
Now, a "privately held corporation" is a special kind of company. It means that the company is owned by a small group of people, and not by the public. These owners, who are often called shareholders or stakeholders, are usually a small number of individuals or families who started the company or invested in it.
Think of it like a club or a group that only allows a few members. This club owns and runs the corporation, making decisions about how it operates and dividing up the profits that the company makes. You can imagine that it's kind of like a tight-knit group of friends or family members who have come together to create and run a business.
Now, let me explain it a little more by giving you an example. Imagine that you and your best friends decide to start a lemonade stand together. You come up with the idea, buy the lemonade ingredients, and set up a little stand in your neighborhood. You all work together, squeezing lemons, pouring the lemonade, and serving customers.
If your lemonade stand becomes really popular and starts making a lot of money, you might decide to turn it into a "privately held corporation." This means that instead of just you and your friends owning and running the lemonade stand, you invite a few other people, maybe your parents or close relatives, to invest in the business and become part owners.
These new owners help make decisions and share in the profits of the lemonade stand. But remember, it's still a small group of people who own and run the business, not the entire neighborhood. So, it's kind of like your very own little lemonade empire!
So, to sum it all up, a "privately held corporation" is a type of company that's owned and controlled by a small group of people, rather than being owned by the public. It's like a special club where the members are the owners, and they make all the important decisions about the company. It's a bit different from big companies that you might see on TV, where anyone can buy shares and become an owner. Does that make sense to you?
Revised and Fact checked by David Wilson on 2023-10-28 16:15:02
Privately Held Corporation In a sentece
Learn how to use Privately Held Corporation inside a sentece
- A privately held corporation is like a secret club where only a few people are members. They run a small business together and keep everything to themselves.
- Imagine you and your family starting a lemonade stand in your backyard. If it grows and becomes a big company, but only you and your family own it, then it would be a privately held corporation.
- Let's say your teacher loves making and selling homemade cookies on the weekends. If she decides to turn it into a business, but she's the only owner, then it would be a privately held corporation.
- Your favorite toy store might be a privately held corporation. It means that only a few people, probably a family, own and operate the store without selling any shares to the public.
- If your parents decide to open a small restaurant but don't want to involve other people, it could be a privately held corporation. They would run it without letting others become owners.
Privately Held Corporation Synonyms
Words that can be interchanged for the original word in the same context.
Privately Held Corporation Hypernyms
Words that are more generic than the original word.
Privately Held Corporation Hyponyms
Words that are more specific than the original word.