Bus Corporation exchanges some of its shares for some of the shares of Car Company. The exchange is used to create Drive Inc., whose business activity is to hold the shares of the two companies. Once the formalities are satisfied, a certificate of the exchange is issued by
A)Drive Inc.
B)none of the choices.
C)the appropriate state.
D)the U.S. Department of Commerce.

Question

Quizplus · Accepted Answer

The appropriate state issues the certificate for the exchange because business incorporations and related formalities, such as the creation of a holding company through share exchange, are governed at the state level in the United States.

Bus Corporation Exchanges Some of Its Shares for Some of the Shares