Five Friends Decide to Form a Corporation Together

Multiple Choice

Five friends decide to form a corporation together. They wish to participate in corporate management. What must they do to participate?

A) Nothing, shareholders generally participate in corporate management.
B) They should form a partnership instead.
C) They must form an S-corp, as C-corp shareholders are not permitted to participate in corporate management.
D) They should specify in corporate bylaws that they will participate in corporate management.
E) They will not be allowed to participate in corporate management as shareholders.