Which of the following is true for a corporation's incorporation into a state?
A. Domestic corporations can incorporate into only one state.
B. Domestic corporations can incorporate into all states that they conduct business in.
C. Alien corporations can only incorporate into one state.
D. Foreign corporations can incorporate into more than one state.
Which of the following is true for a corporation's incorporation into a state?
A. Domestic corporations can incorporate into only one state.
B. Domestic corporations can incorporate into all states that they conduct business in.
C. Alien corporations can only incorporate into one state.
D. Foreign corporations can incorporate into more than one state.
A
To find the answer to the question, we need to understand the terms used and the process of incorporation for corporations.
1. Domestic corporation: Refers to a corporation that is formed and operating within a particular state.
2. Alien corporation: Refers to a corporation that is formed and operating in a foreign country or a state in which it is not incorporated.
3. Foreign corporation: Refers to a corporation that is formed and operating in another state or country, different from its state of incorporation.
Incorporation is the process of creating a legal entity known as a corporation. It involves filing the necessary documents and meeting the requirements of the state (or country) where the corporation will be incorporated.
Now let's analyze the options:
A. Domestic corporations can incorporate into only one state.
This option suggests that a domestic corporation can be incorporated into only one state. This is true, as a domestic corporation is formed and operates within a particular state. Once incorporated, it is considered a separate legal entity in that state.
B. Domestic corporations can incorporate into all states that they conduct business in.
This option implies that a domestic corporation can be incorporated in all states where it conducts business. However, this is not accurate. A domestic corporation is only incorporated in the state where its headquarters or principal place of business is located.
C. Alien corporations can only incorporate into one state.
This option suggests that alien corporations, which are corporations operating in states other than their state of incorporation, can incorporate into only one state. This is true, as an alien corporation can choose to incorporate in one state where it wants to establish a legal presence.
D. Foreign corporations can incorporate into more than one state.
This option implies that foreign corporations, similar to alien corporations, can incorporate in more than one state. However, this is not accurate. Foreign corporations can incorporate in multiple states within a country, but they cannot be incorporated in multiple countries.
Based on the analysis, the correct answer is:
C. Alien corporations can only incorporate into one state.