In a Novation by the Board of a Pre-Incorporation Contract

question 17

Multiple Choice

In a novation by the board of a pre-incorporation contract involving the corporation,the promoter,and a third party:

• A)the corporation is released from liability.
• B)the promoter is released from liability.
• C)the promoter is made secondarily liable.
• D)none of the above

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Definitions:

Negative Reinforcement

The process of increasing a behavior by removing or avoiding a negative outcome or stimulus.

Positive Reinforcement

A process in operant conditioning that increases the likelihood of a behavior by following it with a desirable outcome or reward.

Positive Punishment

Increasing the likelihood of reducing a behavior by adding an unfavorable outcome or event following the behavior.

Natural Consequences

Punishments enacted naturally as a consequence of the negative behavior.