Which of the following is true of articles of incorporation?
A) They govern the operations of partnerships in the absence of other expressed agreements.
B) They provide for protection of limited liability for shareholders.
C) They combine the advantages of a corporation with the benefits of a partnership.
D) They are the instruments by which a corporation is formed.

Question

Quizplus · Accepted Answer

Articles of incorporation are legal documents that set forth the basic governing rules of a corporation, including its purpose, capital structure, initial directors, and other key information. They are required to form a corporation and must be filed with the state in which the corporation is registered. Limited liability protection for shareholders is provided by default under state law once a corporation is formed, but it is not specifically addressed in the articles of incorporation. Articles of incorporation are not applicable to partnerships. There is no specific advantage of a partnership mentioned in relation to articles of incorporation.

Which of the Following Is True of Articles of Incorporation