Which of the following is true about corporations?

Question

Quizplus · Accepted Answer

State corporate law governs the creation, organization, and dissolution of corporations, and changes to the law may affect existing corporations. This may require amending the corporation's articles of incorporation to comply with the new law. Federal law governs some aspects of corporate law, such as securities regulation, but state law is generally the primary source of corporate law.
 
Choice D is incorrect because there is no requirement that a corporation's stock must be owned by a large number of shareholders; closely-held corporations can have a small number of shareholders. Choice A is incorrect because corporate law is primarily governed by state law, not federal law. Choice B is incorrect because common law principles can still be applicable to corporations in certain situations. Choice E is incorrect because closely-held corporations do exist.

Which of the Following Is True About Corporations