Question

An insurance company incorporated in Wisconsin and conducting business in Wisconsin is known as a domestic company. What kind of company are they considered of they do business in Minnesota?

A) Foreign company
B) Multinational company
C) Interstate company
D) Out-of-state company

Answer 1

An insurance company from Wisconsin doing business in Minnesota is considered a A) foreign company, as it operates outside its home state.

Step-by-step explanation:

When an insurance company incorporated in Wisconsin and conducting business in Wisconsin operates in Minnesota, they are considered a A) foreign company.

This term is used because the company is operating outside of its home state, in this case, Wisconsin. They are not a multinational company because they are not necessarily operating globally or across multiple nations as multinationals do.

They are not labeled as interstate company in standard business terminology, and while they are technically an out-of-state company when operating in Minnesota, the correct industry term is 'foreign company'.

Thus, the correct answer is A) Foreign company.