Question

Which of the following is a ground for the suspension or revocation of the certificate of incorporation by the SEC?

A. If the corporation has commenced its business and subsequently become continuously inoperative for two years
B. If the corporation has ceased operations continuously for a period of at least 5 years
C. If the corporation did not commenced its business transactions for 2 years
D. If the corporation did not formally organize after incorporation

Answer 1

The ground for the suspension or revocation of a certificate of incorporation by the SEC is if the corporation has become continuously inoperative for two years.

Step-by-step explanation:

The ground for the suspension or revocation of a certificate of incorporation by the SEC is option A: If the corporation has commenced its business and subsequently become continuously inoperative for two years. This means that if a corporation starts its operations but then remains inactive for a continuous period of two years, the SEC can suspend or revoke its certificate of incorporation.