Which of the Following Statements Is True When Creating a Corporation

question 49

Multiple Choice

Which of the following statements is true when creating a corporation in the U.S.?

• A)Each of the 50 states has a general incorporation statute that stipulates the articles of incorporation to be used in that state.
• B)Incorporation is a federal matter and requires the recording of articles of incorporation with the U.S. Secretary of State.
• C)Corporations cannot be created without the enactment of a local ordinance in the city or county where the corporate headquarters is to be located.
• D)Corporations are created by private agreement and do not require the filing of any documents with a government official.

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Definitions:

Stalactite

A type of speleothem that hangs from the ceiling of limestone caves, formed by the precipitation of minerals from water dripping down.

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks such as limestone, and is the main component of shells of marine organisms, snails, and eggs.

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the Earth's surface, including rain, snow, sleet, and hail.

Evaporation

The process by which water changes from a liquid to a vapor or gas, often driven by heat from the sun.