What is one requirement for a firm to operate as a corporation?

For a firm to operate as a corporation, it must meet legal conditions for incorporation. This involves filing specific documents with the state government, such as articles of incorporation, and adhering to the regulations that govern corporate entities. This legal process establishes the corporation as a separate legal entity from its owners, granting it certain rights and responsibilities, including the ability to enter contracts, own assets, and sue or be sued.

While other options may touch upon aspects of corporate structure or finance, they do not represent fundamental requirements for a corporation's operation. For instance, a sole proprietorship involves individual ownership and does not align with the corporate model. The requirement to provide dividends is not mandatory; corporations can choose to reinvest profits instead of distributing them to shareholders. Additionally, having international operations is not a prerequisite for all corporations, as many successful corporations operate solely within domestic markets. Therefore, meeting the legal conditions for incorporation is the essential requirement for establishing a corporation.