Future Business Leaders of America (FBLA) Agribusiness Practice Test

What must a corporation include in its name according to the Articles of Corporation?

1. The full name of the CEO

2. The term "Corporation," "Inc.," or related abbreviations

3. Its main product or service

4. The date of establishment

The correct answer is: The term "Corporation," "Inc.," or related abbreviations

The requirement for a corporation to include the term "Corporation," "Inc.," or related abbreviations in its name is grounded in the desire for clarity and transparency. This stipulation helps to identify the business structure to the public and ensures that stakeholders are aware that they are engaging with a corporation, which typically has specific legal obligations and protections. By clearly labeling itself as a corporation, the entity communicates that it operates under the laws governing corporations, which often include limited liability for its shareholders and distinct tax obligations. This practice is not only a legal requirement in many jurisdictions but also serves an important role in consumer protection and business transparency. Including the full name of the CEO, the main product or service, or the date of establishment is not mandated for corporate names, as these details do not inherently convey the corporate identity or legal status. Therefore, focusing on the structure of the business—as required by law—helps maintain an organized and informative business environment.