Which of the following defines a lay corporation?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

A lay corporation is defined as one that is organized for a purpose other than religious activities. This encompasses a wide range of corporate structures that may engage in various business activities, social causes, or community services but are not focused on religious objectives. By specifying that the purpose is non-religious, this definition distinguishes lay corporations from those that serve religious or spiritual goals, such as religious corporations or charities that primarily operate in a religious context.

The other definitions typically focus on specific types of corporations, such as those established exclusively for religious or charitable purposes. A lay corporation may indeed support causes that could be charitable or philanthropic, but its primary distinguishing factor is the absence of religious focus. Additionally, the mention of a corporation governed by a single board member does not accurately represent the nature of a lay corporation; governance structures can vary widely regardless of the corporate purpose. Thus, the definition that clearly defines a lay corporation is the one specifying a non-religious purpose.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy