What designation applies to a corporation with outstanding shares of stock and managerial control held by a limited number of people?

The designation that applies to a corporation with outstanding shares of stock and managerial control held by a limited number of people is classified as a close corporation. In a close corporation, the shares are typically not traded on public stock exchanges and are often owned by a small group of individuals, which allows for more control over the company. This structure often leads to a more personal management style, as the shareholders usually play a direct role in the operation and decision-making processes of the business.

This type of corporation has certain benefits, such as reduced regulatory requirements and the ability to maintain confidentiality regarding its operations, which is attractive to closely held businesses. The ownership structure allows for flexibility and a more informal management style, making it suitable for families or small groups looking to maintain a tight control over business activities.

In contrast, a public corporation has its shares sold to the general public through stock exchanges, allowing for more shareholders and requiring more rigorous financial disclosures. An open corporation is essentially synonymous with a public corporation, focusing on public trading and ownership. A joint stock company is a broader term that generally refers to any company whose capital is divided into shares held by shareholders, which can include both public and private entities.