What Is Ordinarily the First Step in the Formation of a Corporation

question 37

Multiple Choice

What is ordinarily the first step in the formation of a corporation?

• A) Development of by-laws for the corporation
• B) Issuance of the corporate charter
• C) Application for incorporation to the appropriate Secretary of State
• D) Registration with the SEC

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.

Credit Sales

Sales made on credit, meaning payment is to be received after the delivery of goods or services.

Credit Card Discount

Fee charged by the credit card company for its services.