Chapter 11, Problem 3Q

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liability of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: whether Mr. N’s statement, ‘a corporation must be incorporated in the state in which its headquarters office is located’ is correct.