Final answer:
A corporation must have a board of directors, and in small corporations, the board of directors and shareholders must be different individuals to ensure transparency and accountability. Correct option is True.
Step-by-step explanation:
A business that chooses to form a corporation must have a board of directors. In small corporations, the board of directors and shareholders must be different individuals. This is to ensure that there is a separation of power within the company and prevent any conflicts of interest. The board of directors is responsible for making important decisions and overseeing the company's operations, while the shareholders own the company and have the power to elect the board members. By having different individuals serve as directors and shareholders, it helps to maintain transparency and accountability in the corporation.