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1. A person that wishes to incorporate a

business needs to
a. Find stockholders
b. Pay government dividends
c. File for permission from the
government
d. Do all of the above

2 Answers

3 votes

Final answer:

To incorporate a business, the primary requirement is to file for permission from the government. Finding stockholders and paying dividends are activities that might follow after incorporation but are not essential for the act of incorporation itself.

Step-by-step explanation:

A person who wishes to incorporate a business primarily needs to file for permission from the government. When a business incorporates, it becomes a corporation—a distinct legal entity that is owned by shareholders who have limited liability for the company's debts but can share in its profits and losses. Starting a corporation requires compliance with certain legal and regulatory requirements, including a formal application or registration with a governmental body, which is often the state's secretary of state in the U.S. Moreover, a newly formed corporation may decide to raise funds through the sale of stock, a process that requires expertise from investment bankers and lawyers, as it is subject to strict reporting requirements and oversight by government agencies such as the Securities and Exchange Commission (SEC).

While finding stockholders and paying dividends may also be part of running an incorporated business, these actions are not required for the initial act of incorporation itself. Therefore, the answer to the question is c. File for permission from the government.

User Cheesetaco
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7.5k points
3 votes

Answer:

c. File for permission from the government

Step-by-step explanation:

The number one step when incorporating a business is filing for permission from the government. Every state has a special regulatory body or an agency responsible for accepting or denying applications. This way, the company becomes registered in the national database.

Finding stockholders is not essential if the owner possesses enough capital to fund the company.

User Donnett
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8.4k points