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Question:
Before the owners of a corporation can establish the company’s bylaws and elect a board of directors, they must receive a _____ from the state in which they are doing business.
Answer:
Before the owners of a business can create their own policies and laws, and set up a Board of Governors, they must receive a Certificate of Incorporation or Authority from the state in which they are operating.
What is a Certificate of Authority?
This document shows that a business has been authorized to carry out business activities.
It is usually issued by the State in which the company is operating. In Florida for instance, this document is issued by the Secretary of State for a little fee.
See the link below for more about the Certificate of Authority:
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