Question

The nationality of the corporation determined by the nationality of the stockholder in control of the same is called:

A. Domicile test
B. Incorporation test
C. Management test
D. Control test

Answer 1

The nationality of the corporation determined by the nationality of the stockholder in control of the same is called the control test.

Step-by-step explanation:

The correct answer is D. Control test.

The nationality of a corporation is determined by the nationality of the stockholder in control of the corporation. This is known as the control test. The control test considers the nationality of the controlling stockholder, regardless of where the corporation is incorporated or where its management is based.

For example, if a corporation is incorporated in Country A but its controlling stockholder is a citizen of Country B, then the nationality of the corporation would be Country B according to the control test.