Question

Can anyone help me please I am doing business law not economics

it should be written in 100 words include at least one citation either from a text book or an alternative reliable source per response.

ABC Corporation obtained its Certificate of Incorporation (its Charter) from the State of Delaware. It has its headquarters and most of its employees in the State of Massachusetts. Based on this scenario, ABC Corporation is considered a Foreign Corporation in Massachusetts. True or False and explain answer.

Answer 1

Foreign Corporation means a corporation that does business in a state but is incorporated in a different state or a foreign country. It describes an existing corporation that conducts business in a state or jurisdiction other than where it was originally incorporated.

It is a corporation which is incorporated under the laws of a different state or nation.

Applying the same provision here for the given question, though ABC corporation has its headquarters and most of its employees in the state of Massachusetts but has obtained its certificate of incorporation or its Charter from the state of Delaware.

Simply, it's doing business in the state of Massachusetts so, its bound by the laws of Massachusetts' jurisdiction but incorporated in Delaware ; which is a different state. So, It satisfies the condition for a ‘Foreign Corporation'.

So, Yes. Its true that based on this scenario, ABC Corporation is considered a Foreign Corporation in Massachusetts.

Citation -

“A corporation may be incorporated in one state yet do business in many other states in which it is not incorporated. The corporation’s contacts with other persons in those states may permit the states to regulate the corporation’s transactions with their citizens, to subject the corporation to suits in their courts, or to tax the corporation. The circumstances under which states may impose their laws on a business incorporated in another state is determined by the law of foreign corporations. A corporation is a domestic corporation in the state it has granted its charter; it's a foreign corporation in all the other states in which it does business."