A new corporation forms every time there is a change in ownership in the shares of common stock.

Name: A new corporation forms every time there is a change in ownership in the shares of common stock.
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Question

Quizplus · Accepted Answer

A change in ownership of shares does not result in the formation of a new corporation. It simply changes the ownership structure of the existing corporation. A new corporation is formed through the process of incorporation, which involves filing legal documents with the state.

A New Corporation Forms Every Time There Is a Change