The First Step to Incorporating a Company Is To

question 80

Multiple Choice

The first step to incorporating a company is to:

• A)select the company's name
• B)write the articles of incorporation
• C)buy necessary licenses and pay required taxes
• D)hold an organizational meeting
• E)create a board of directors

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Definitions:

Asset-backed Securities

Financial securities collateralized by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables.

Special Purpose Vehicle

A subsidiary company created to isolate financial risk, often utilized in securing assets and securitization transactions.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the corporation's stock at the bondholder's option.

Call Provision

A feature in certain contracts allowing the issuer the right to redeem or pay off the contract before its maturity date, usually bonds.