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Which of the following is true of a corporation's incorporation in a state?

A) Domestic corporations can incorporate in only one state.
B) Domestic corporations can incorporate in all states in which they conduct business.
C) Alien corporations can only incorporate in one state.
D) Foreign corporations can incorporate in more than one state.

1 Answer

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Final answer:

Domestic corporations can indeed incorporate in more than one state by registering or 'foreign qualifying' in other states where they conduct business. Foreign corporations, which are ones incorporated in one state but operating in another, also have the ability to incorporate in more than one state.

Step-by-step explanation:

The correct answer to the question, "Which of the following is true of a corporation's incorporation in a state?" is that domestic corporations can incorporate in more than one state. A domestic corporation is one that is incorporated in the state where it does most of its business. This process is known as foreign qualification and does not reflect the corporation's nationality but its status outside of the state where it is domestic.

Foreign corporations, which here refers to companies incorporated in one state but doing business in another, can indeed incorporate in more than one state. Alien corporations are those that are incorporated outside the United States, and these can also register to do business in multiple states within the US.

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