Asked by Changhao Zhang on Jun 11, 2024

verifed

Verified

Ala Foreign Corporation is incorporated in Alabama.However,it is running 90 percent of its operations from Indiana.Such a type of corporation is called a(n) :

A) government-owned corporation.
B) foreign corporation.
C) alien corporation.
D) pseudo-foreign corporation.

Pseudo-Foreign Corporation

A business entity that operates in a country different from its country of incorporation but is treated as a domestic company for legal or tax purposes.

Foreign Corporation

A corporation that is incorporated in one jurisdiction but is doing business and registered to operate in another jurisdiction.

  • Comprehend the foundational principles and legal structure that regulate corporations, encompassing their various forms and traits.
  • Understand the importance of jurisdiction and its impact on corporations, particularly those from abroad.
verifed

Verified Answer

MN
Michelle NgadjouJun 16, 2024
Final Answer :
D
Explanation :
A foreign corporation may conduct most of its business in a state other than the one in which it is incorporated.Such a corporation is called a pseudo-foreign corporation in the state in which it conducts most of its business.