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.

---

Definitions:

Limited Problem Solving

A consumer decision-making process used for purchases that require a moderate amount of effort and time for information gathering and deliberation.

Past Experience

Previous events or activities that an individual or organization has encountered, affecting their behavior or decisions.

External Information

Information that originates outside an organization, which can influence decisions and strategies, including market trends, economic indicators, and competitive data.

Impulse Purchases

Items bought without prior planning or consideration, often triggered by emotions or the immediate appeal of the product.