Which of the Following Is Not True of Promoters of a Corporation

question 36

Multiple Choice

Which of the following is not true of promoters of a corporation?

• A) They arrange for capital and financing to start a corporation.
• B) They assemble the necessary assets to start a corporation.
• C) They attend to the actual legal formation of a corporation.
• D) They continue to solicit capital whenever needed after incorporation.

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Definitions:

Administrative Expenses

Costs associated with the general administration of a business, including office supplies and salaries of non-production staff.

Planning Budget

A forecast of revenue, expenses, and cash flow used by organizations to plan for the upcoming period.

Occupancy Expenses

Costs related to occupying a physical space, such as rent, utilities, and property taxes.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, allowing better analysis and control over performance.