Which of the Following Is Correct Regarding a Foreign Corporation

question 2

Multiple Choice

Which of the following is correct regarding a foreign corporation?

• A) A foreign corporation is incorporated in a foreign country.
• B) Failure to obtain a certificate of authority to transact business in the state impairs the validity of a contract entered into by the corporation.
• C) A foreign corporation transacting business within a particular state without having first qualified cannot use the state court to maintain a lawsuit until the corporation obtains a certificate of authority.
• D) All of these are correct.

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Definitions:

Straight-Line Depreciation

An approach to evenly spread the expense of an asset over its period of utility.

Working Capital

The gap between a firm's present assets and liabilities, showing its operational efficiency and ability to cover short-term obligations.

Operating Cash Inflow

Cash generated from a company's normal business operations.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest depreciation method.