Use This Fact Situation to Answer the Related Questions That

question 22

Multiple Choice

Use this fact situation to answer the related questions that follow. Albert,who is a sole proprietor who wants to expand his present business,which makes and supplies plastic containers,has decided to incorporate his business to limit his liability.Yesterday,Albert signed the articles of incorporation at the office of his lawyer,just before he had a business meeting with a large retail store.During that meeting Albert agreed to manufacture and supply 20 000 plastic containers to the retail store.Thinking that his new company would be incorporated shortly,Albert decided to sign the contract on behalf of a corporation to be incorporated.A couple of days later Albert's lawyer told Albert that his new company had been incorporated.A month went by during which the retail store found that the containers were defective,and since there was no warrantee on them,the store spent $15 000.00 to repair them.
In this case,in bringing a lawsuit,the store will consider

• A)that Albert's assets can be seized to satisfy a judgment.
• B)that liability will rest with Albert and not his new company.
• C)that Albert's new company has not adopted the contract.
• D)that Albert signed the contract on behalf of a company to be incorporated.
• E)all of the above

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Definitions:

Strategy Development

Strategy development involves creating plans and actions to achieve long-term goals and objectives, often within a business or organizational context.

General Plan

An overarching strategy or outline intended to achieve long-term goals.

Buffer

A temporary storage area, typically in memory, used to hold data while it is being transferred from one place to another.

Justification Material

Evidence or reasoning presented to support an argument or decision.