A corporation receives its charter from ________.
A) the federal government
B) the state
C) the board of directors
D) the stockholders

Question

Quizplus · Accepted Answer

A corporation receives its charter (or articles of incorporation) from the state in which it is incorporated. The state grants the corporation legal status and the ability to own property, enter into contracts, sue and be sued, and issue stock. The federal government does not issue corporate charters, but it does regulate various aspects of corporate activity through laws and regulations. The board of directors and stockholders are involved in the management and governance of the corporation, but they do not grant the charter.

A Corporation Receives Its Charter from ________