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The advantages of a closed corporation include it is affordable to establish, there are very few legal complications, and the business income is often exempt from income tax. There are also disadvantages including a limited number of investors allowed, personal liability, and banks may require financial audits.

A close corporation can't make a public offering of its stocks. The shareholders have a great deal of control over who can buy into the company. As a result, it's very difficult to gain control of a close company via a hostile takeover.

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Q: What are the Advantages and disadvantages of close corporation?
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