Which of the Following Is True for a Corporation's Liability

question 46

Multiple Choice

Which of the following is true for a corporation's liability on the promoters' contracts if the corporation is never formed?

• A)The corporation assumes liability of the promoters' contract automatically upon its creation.
• B)The promoter's liabilities are transferred to the board of directors of the corporation upon its formation.
• C)The promoter, corporation, and the third-party enter into a novation whereby liability is solely transferred to the corporation.
• D)The promoters have joint personal liability on the contract unless the third party specifically exempts them from such liability.

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Definitions:

Degrees

Units of measurement for angles in a circle or for temperature; in the context of education, it refers to academic qualifications.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Inferential Statistics

Uses mathematical models, theories, and hypotheses to make predictions about a broader population based on observed sample data.