Lobo Manufacturing, Inc., is incorporated under the laws of New Mexico. Its principal place of business is in California, and it has permanent sales offices in several other states. Under the circumstances, which of the following is true?

A. California may validly demand that Lobo incorporate under the laws of the State of California.
B. Lobo must obtain a certificate of authority to transact business in California and the other states in which it does business.
C. Lobo is a foreign corporation in California, but not in the other states.
D. California may prevent Lobo from operating as a corporation if the laws of California differ regarding organization and conduct of the corporation's internal affairs.