Why Is It Preferable for Risk Management to Use a Shelf

question 56

Multiple Choice

Why is it preferable for risk management to use a shelf company as the vehicle for taking prompt advantage of a valuable business opportunity?

• A) Outsiders retain liability if the corporation fails to come into existence.
• B) It facilitates direct entrance into contractual obligations by the corporation.
• C) It facilitates the ability of promoters to sign in a personal capacity.
• D) Outsiders are restricted from relying on the apparent authority of agents.

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Definitions:

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A species of great ape native to the forests and savannahs of tropical Africa, known for its intelligence and complex social behaviors.

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Linguistic Relativity Hypothesis

The notion that the language a person speaks largely determines the nature of that person’s thoughts.