Which of the following describes a private corporation?

A private corporation is defined as a corporation that does not trade its shares on public stock exchanges. This means that ownership is typically held by a small group of investors, and the shares are not available for public purchase. The lack of public trading allows private corporations to maintain greater control over their operations, financial decisions, and management compared to public corporations, which are subject to strict regulatory scrutiny and reporting guidelines imposed by governmental entities like the Securities and Exchange Commission (SEC).

This description accurately captures the essence of a private corporation, distinguishing it from other types of corporations such as public corporations, which do trade their shares publicly and are required to adhere to extensive regulatory reporting and governance standards. Other options present different characteristics that do not align with the definition of a private corporation; for instance, a government-owned corporation refers to a public sector entity rather than a privately held one. Similarly, having only one shareholder does not define whether a corporation is private, as there can be private corporations with multiple shareholders. The mention of special regulations applies more to public corporations rather than private ones, which face less regulatory burden regarding disclosure and compliance.