Which of the following states that a corporation cannot undertake any transaction unless its charter permits it?

Question

Quizplus · Accepted Answer

The ultra vires doctrine states that a corporation cannot undertake any transaction unless its charter permits it. This means that a corporation can only engage in activities that are explicitly stated in its charter or articles of incorporation. Any action beyond that scope is considered ultra vires, or beyond the corporation’s legal power.

Which of the Following States That a Corporation Cannot Undertake