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Many Corporations Choose to Incorporate in Delaware

Question 72

Multiple Choice

Many corporations choose to incorporate in Delaware.Which of the following is NOT an advantage to incorporating in Delaware?


A) Delaware has a well-established body of case law, so the reliability and consistency of judicial decisions are enhanced.
B) Delaware statutes give officers and directors a wide range of decision-making latitude, not requiring shareholder consent.
C) Delaware statutes provide officers and directors strong protections from shareholder lawsuits alleging management negligence.
D) Delaware's tax structure provides significant tax benefits to out-of-state corporations incorporating in the state of Delaware.

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