The CBCA States That a Promoter Acting on Behalf of a Corporation

question 4

Multiple Choice

The CBCA states that a promoter acting on behalf of a corporation before it comes into existence may avoid personal liability and waive any benefits under the contract by

• A) getting the promoter's "warranty of authority" status.
• B) including an express term that the promoter will not be bound by the agreement.
• C) making it clear to third parties that he is simply an agent for a yet to be established corporation.
• D) keeping the contract in escrow until the new corporation has been formed.
• E) ratifying the contract under the "non- existent" principal clause.

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Definitions:

Set Of Data

A collection of related information or values that are typically measured, observed, or collected from experiments or surveys.

Mode

The number that occurs the most often in a collection of data.

Squared Deviation

The square of the difference between an observed data value and the mean of the data set, used in variance and standard deviation calculations.

Mathematical Average

A statistical measure representing the sum of values divided by their quantity.