Which of the Following Statements About Incorporation Is True

question 95

Multiple Choice

Which of the following statements about incorporation is true?

• A)A corporation has to incorporate in the state in which it is based.
• B)A corporation is not subject to the laws of the state in which it is formed.
• C)Articles of incorporation may vary slightly from state to state.
• D)Corporations are taxed the same regardless of the state in which they are chartered.
• E)Corporations must register in each state in which they want to do business.

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Definitions:

Federal Government

A system in which power is divided between a national (federal) government and various regional governments.

Largest Employer

The individual organization or entity that employs the highest number of workers in a given area, sector, or country.

Minority Rights

Minority rights are the normal individual rights as applied to members of racial, ethnic, class, religious, linguistic, or sexual minorities; and also the collective rights accorded to minority groups.

Majority Rule

A principle that the decision of a group should reflect the preference of more than half of those participating.