Unlocking the Power of Private Corporations: Trevor and Tyler's Success Story

What type of corporation do Trevor and Tyler own?

A. Public corporation

B. Private corporation

C. Partnership

Answer:

B. Private corporation

Trevor and Tyler own a private corporation, which means there are no publicly traded stocks and they have full ownership. Private corporations can range in size and operate without offering shares to the public, unlike public companies.

Explanation: Trevor and Tyler, by owning all the stock of Double T Corporation, which is not sold to the general public, own a private company. A person who owns 100% of a company's stock effectively owns the entire company, as the company's stock is divided into shares. Unlike corporations with millions of shares owned by thousands of shareholders, such as IBM or Microsoft, in this case, Trevor and Tyler have complete ownership of their company.

A private corporation may be run by individuals or groups and does not have publicly issued stock. Such businesses can vary in size, from small firms to large entities with substantial revenue. Private companies, including large ones like Cargill or the Mars candy company, are typically owned and operated by the people who run them day-to-day, often without stock available to the public.

Corporations can either be public or private. While public companies have stock that is traded on stock exchanges, a private company like Double T Corporation does not. They're owned by shareholders who have limited liability for the company's debts but are entitled to profits and bear the risks of losses.