A Preincorporation Subscription to Stock Is Generally Treated as an Offer

question 9

True/False

A preincorporation subscription to stock is generally treated as an offer to the corporation to buy the stock when the corporation is formed and the stock is thereafter issued.

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Definitions:

Division of Output

The allocation of the total quantity of goods or services produced among various consumers or markets.

Central Planning

An economic system where the government makes all decisions on the production and distribution of goods and services.

Freedom of Enterprise

the ability of individuals to start and manage their own businesses without undue restriction or interference.

Entrepreneurs

Individuals who start, organize, manage, and assume the risk for a business or enterprise, often introducing new products or services to the market.