Question

Mike Jones had been living at the same address in Springfield, California, for more than 30 years when he discovered that his water was emitting a strong odor. When he brought this observation to the attention of many of his neighbors, they complained of a similar odor. After some investigating, Mike discovered that a large corporation, the hypothetical Springfield Gas & Electric, had been dumping chromium 6, a possible carcinogen, into the water supply for decades. Mike then went to a lawyer with this discovery. The lawyer then filed suit against Springfield Gas & Electric in the name of the nearly 1,000 residents in Springfield with contaminated water.

Suppose that Springfield G&E Corporation is incorporated within the state of California. What type of corporation is discussed in the case example?

Multiple Choice

• Nonprofit corporation
• S corporation
• Foreign corporation
• Domestic corporation

Suppose the federal government charters a corporation to help regulate financial matters across state borders. This corporation would be a(n) ________________.

• closely held corporation
• private corporation
• alien corporation
• public corporation
• nonprofit corporation

Answer 1