Roy Is the Promoter of a New Corporation That Has

question 49

True/False

Roy is the promoter of a new corporation that has not yet been organized.On behalf of the as-yet unincorporated business, he enters into a three-year lease agreement for office space and personally signs the lease in his own name.The corporation is liable on the contract, because Roy is its agent.

---

Definitions:

Creditors

Individuals or entities to whom money is owed by a debtor.

Judicially Dissolve

A legal process in which a court orders the termination of an entity, such as a corporation, due to specific circumstances.

Unsatisfied Judgment

A legal judgment that has not been fully paid or settled by the debtor.

Insolvent

The state of being unable to pay debts when they are due, often leading to bankruptcy proceedings.