Which term describes the activities a corporation is authorized to engage in, such as lending money or brokering real estate?

• A. Trademark and branding activities
• B. Powers of the corporation
• C. Only tax-related powers
• D. No powers unless granted by county

Answer: (B)

The activities a corporation is authorized to engage in are its powers. These powers come from the corporation’s charter and state law, outlining what the company can do to pursue its stated business purposes.

That’s why “powers of the corporation” is the best answer: lending money or brokering real estate are examples of general corporate powers—the broad authority granted to a corporation to carry on its business. They’re not about branding or tax-specific actions, and they aren’t something a local county alone grants; the authority typically comes from the state through the charter.

Think of it as the umbrella authority a corporation has to act, beyond which activities would require additional permissions or would be outside its authorized scope.