57.6k views
4 votes
The Panon Corporation is incorporated in Tennessee, but its corporate headquarters is in Massachusetts. As a result, the Panon Corporation is:

1) considered a citizen of only Massachusetts.
2) considered a citizen of only Tennessee.
3) not considered a citizen of either Massachusetts or Tennessee.
4) considered a citizen of both Massachusetts and Tennessee.

1 Answer

6 votes

Final answer:

The Panon Corporation is considered a citizen of both Tennessee, where it is incorporated, and Massachusetts, where its corporate headquarters is located.

Step-by-step explanation:

The Panon Corporation, which is incorporated in Tennessee but has its corporate headquarters in Massachusetts, is considered a citizen of both Tennessee and Massachusetts. This dual citizenship for corporations is due to the fact that corporations are considered to be citizens of the state in which they are incorporated and also of the state where they have their principal place of business.

Therefore, in legal terms and for purposes such as jurisdiction and venue for lawsuits, Panon Corporation would be seen as a citizen of both states.

The Panon Corporation, being incorporated in Tennessee, is considered a citizen of Tennessee due to its legal status. However, its corporate headquarters being in Massachusetts does not make it a citizen of Massachusetts. In terms of corporate citizenship, a corporation is considered a citizen of the state where it is legally incorporated.

User Supun Induwara
by
8.0k points