Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which entity is responsible for creating a corporation?

1. Shareholders alone

2. The board of directors

3. Incorporators

4. The government only

The correct answer is: Incorporators

Creating a corporation involves a legal process that requires the involvement of incorporators. Incorporators are individuals or entities that are responsible for filing the necessary documents, such as articles of incorporation, with the appropriate state authorities to formally establish a corporation. They serve as the initial promoters of the corporation, handling the paperwork that lays the legal groundwork for the corporate structure. While shareholders can play a crucial role in the operation and ownership of the corporation once it is established, they do not participate in the actual formation process. Similarly, the board of directors, while vital for governance and decision-making, is appointed after the corporation has been formed and does not have a role in the initial creation. The government does provide the legal framework and approval necessary for the incorporation but does not independently create the corporation; it merely grants the legal status once the proper incorporation documents and procedures are followed. Thus, the responsibility for creating a corporation lies specifically with the incorporators.