A Businessperson Who Enters into a Contract with an Investor

question 101

True/False

A businessperson who enters into a contract with an investor on behalf of a future corporation is not personally liable on the deal, even though the firm is not yet formed, because the nature of investment is risk.

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Definitions:

Diagnose

The process of identifying a disease, condition, or psychological state by examining symptoms and applying specific criteria.

Compatible

A state in which two or more things are able to exist or work together in combination without problems or conflict.

Social Network

A digital platform or structure made up of individuals or organizations that are interconnected through various forms of relationships such as friendship, kinship, common interests, or beliefs.

Emotional Stability

Refers to an individual's ability to remain stable and balanced emotionally, even in stressful situations.