Final answer:
A business incorporates by first gaining government permission and writing a corporate charter, then it may issue a stock sale. This process ends with the shareholders owning the company and electing a board of directors.
Step-by-step explanation:
The correct description of how a business incorporates is that the business must gain government permission first, typically by filing articles of incorporation with the appropriate state authority. Then, the business writes a charter, which is a legal document that establishes the corporation's existence and defines its structure and purpose. After these steps, the corporation can issue a stock sale to raise capital. The shareholders become the owners of the company and are entitled to vote for the board of directors. The board is responsible for making key decisions and hiring top executives to manage the day-to-day operations. The amount of stock a shareholder owns correlates directly to their voting power within the company.