Asked by Paola Diogene on May 18, 2024
Verified
Welding Corporation makes a good faith attempt to incorporate but there is a defect in its incorporation. Welding undertakes business as a corporation. In this circumstance, the firm's existence may be challenged by
A) any third party.
B) the state.
C) a director, officer, or shareholder.
D) any corporation with which it does business.
Good Faith
A principle that emphasizes honesty, fairness, and sincerity in the execution of obligations or dealings.
Defect In Incorporation
Errors or omissions that occur during the process of forming a corporation, which could affect the entity's legal status.
- Recognize the legal implications of misrepresentation or errors in corporate documentation.
Verified Answer
JM
Jordy MaugeriMay 20, 2024
Final Answer :
B
Explanation :
The state has the authority to challenge the existence of a corporation if there is a defect in its incorporation process. This is because the state is responsible for the legal recognition of corporations through the incorporation process.
Learning Objectives
- Recognize the legal implications of misrepresentation or errors in corporate documentation.