Once a Corporation Is Recognized by the State,the Corporation Automatically

question 20

True/False

Once a corporation is recognized by the state,the corporation automatically becomes liable for all pre-incorporation contracts entered into by a promoter on behalf of the corporation.

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Definitions:

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its decrease in value over time.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet, often used to assess a company's worth.

Post-audits

Evaluations conducted after a project or investment has been completed to assess its success and learn from its outcomes.

Capital Budgeting Decision

The process of evaluating and selecting long-term investments that are in line with the firm's goal of value maximization.