In States That Follow the Model Business Corporation Act, the Foreign

question 17

Multiple Choice

In states that follow the Model Business Corporation Act, the foreign corporation is not required to________ when applying for authority to transact business in that state.

• A) file an application for a certificate of au- thority with the secretary of state or other appropriate state authority
• B) designate a registered agent and regis- tered office for service of process in the foreign state
• C) file a copy of the corporation's articles of incorporation with the secretary of state or other appropriate state authority of the foreign state
• D) file a certificate of existence (or certificate of good standing) from the foreign corpo- ration's state of domicile with the secre- tary of state or other appropriate state authority of the foreign state

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Definitions:

Interest-Rate Increase

A rise in the cost of borrowing money, reflected in a higher percentage charged on loans and credits.

Consumer Optimum

A state where a consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.

Income Effect

The change in consumption that results from changes in real income, affecting the purchasing power of consumers.

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers replace more expensive items with less costly alternatives.