Sharon Entered into a Preincorporation Share Subscription Agreement on January

question 43

Multiple Choice

Sharon entered into a preincorporation share subscription agreement on January 1,2006.The corporation was formed on February 1,2006.What is the status of this agreement on March 1,2006,under the Model Business Corporation Act?

• A)It is binding only if Sharon has already paid for the shares.
• B)It is binding even if Sharon has not already paid for the shares.
• C)It is not binding because the corporation did not exist on January 1,2006.
• D)It is not binding unless Sharon ratifies the agreement after the corporation has been formed.

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Definitions:

Employee Behavior

Actions and conduct of individuals in the workplace, influenced by individual, group, and organizational factors.

Four-Drive Theory

A framework in psychology that suggests four basic motivational drives influence human behavior: acquiring, bonding, learning, and defending.

Drives

Internal motivational states that compel individuals to engage in particular behaviors to satisfy specific needs.

Employee Motivation

The level of enthusiasm, energy, and commitment that employees bring to their job, which can significantly affect their performance and productivity.