Chapter 8, Problem 16AA

To determine

To evaluate the provider of grants to the corporate charter.

Explanation of Solution

The government of the State which issues the charter to companies. The purpose of a corporate charter is to lay down the fundamental elements for an incorporated entity. For example, a company charter sets out the activities the business intends to participate in once it has been formed. A specific clause of a corporate charter in this regard is to participate in any lawful activity allowed by a corporate in compliance with state laws.

Economics Concept Introduction

Introduction:  A corporate charter is a document to be sent to the State Secretary when a corporation is incorporated. It is also known as Certificate of Incorporation. The charter details can vary depending on the various laws and the size of a corporation. A company charter's basic features include the corporation's name, the names of the persons chosen to serve on the initial board of directors, the address of registered agent’s name and the center of business location.