Ace, Bob, and Cat have decided to create a new company to do home remodeling services. They all come together and form ABC Remodeling, Inc., and the three have an understanding that if anyone ever wishes to leave the business, the other co-owners can buy their shares out before anyone else has a chance.

After 5 years in the business, Ace decides to move to another state and does not wish to remain part of the business. He offers his portion of the business to Bob & Cat and tells them he feels his ownership interest is worth $50,000. They both decline to buy Ace's ownership shares of the business. Ace then finds Donna who is interested in buying the shares to become part of the business and ultimately buys the shares from Ace for $50,000.

1. What type of Corporation have they likely formed considering the above facts?

2. Since Ace presented his shares for sale to the co-owners first, what is the term called for presenting your ownership interest first to your co-owners before you can sell to anyone else?

3. Why was Donna able to purchase the shares of ownership from Ace in the end?