A Corporation Is Considered a Citizen

question 6

Multiple Choice

A corporation is considered a citizen:

• A) of the state in which it has its principal office, for the purpose of determining diversity of citizenship.
• B) of the state of its incorporation, for the purpose of determining diversity of citizenship.
• C) in both of these situations.
• D) in neither of these situations.

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Definitions:

Indirect Labor

Refers to the labor costs of employees who do not directly work on the production of products, but support the production process.

Direct Labor

The wages or salaries paid to employees who are directly involved in the production of goods or services.

Factory Employees

Workers employed in industrial production, typically involving manual labor or operation of machinery in a factory setting.

Raw Materials

Basic inputs and resources used in the manufacturing process to produce finished goods.