Corporate laws are governed primarily by which entity?

The correct choice is based on the fact that corporate laws in the United States are predominantly established at the state level. Each state has its own set of corporate laws, which govern the formation, operation, and dissolution of corporations within its jurisdiction. This means that the rules related to corporate governance, shareholder rights, and business operations are primarily determined by the individual states rather than by federal regulations or international jurisdictions.

For example, states like Delaware have become well-known for their business-friendly laws, attracting many companies to incorporate there. This has led to a variety of corporate structures and laws applicable to businesses, reflecting the specific needs or preferences of local jurisdictions.

In contrast, the federal government primarily regulates certain aspects of corporations, such as securities laws, but does not govern the comprehensive framework for corporate law that each state establishes. International courts do not participate in governing domestic corporate laws within the United States, and local governments generally do not have jurisdiction over corporate governance, which typically falls to the states.