Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which document outlines the governance structure of a corporation?

1. Articles of Corporation

2. Corporate policies

3. Business plan

4. Partnership agreement

The correct answer is: Articles of Corporation

The document that outlines the governance structure of a corporation is the Articles of Incorporation. This foundational legal document is filed with the state government to formally establish the existence of the corporation. It specifies key details such as the corporation's name, purpose, duration, and importantly, the governance structure, which includes the number and types of shares, the rights of shareholders, and the roles of directors and officers. By defining the governance framework, the Articles of Incorporation provide clarity on how decisions are made within the corporation and how the company is managed, ensuring compliance with legal and regulatory requirements. This sets the operational backbone for the corporation, distinguishing it from other documents like corporate policies, which may detail the company's operational guidelines, or a business plan, which outlines strategic goals and financial projections. A partnership agreement similarly pertains to partnerships rather than corporations, focusing on the relationships and responsibilities among partners.