Roger Is the Promoter of a New As-Of-Yet Unincorporated Business

question 54

True/False

Roger is the promoter of a new as-of-yet unincorporated business.As promoter,he enters into a three-year lease agreement for office space and personally signs the lease in his own name.The future corporation is liable on the contract,because Roger is its agent.

---

Definitions:

Earnings Before Taxes

A financial metric indicating the profit earned by a business before the deduction of tax expenses.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term; these include items like rent, salaries, and insurance.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.