Jones Corp

question 21

Multiple Choice

Jones Corp. is a business concern in the process of being set up. Benito, its promoter has entered into preincorporation contracts. After the corporation comes into existence, Benito can be released from liability on the preincorporation contracts through:

• A) an agreement with Jones Corp., wherein Jones Corp. agrees that it will be substituted for Benito.
• B) an agreement with the third party before adoption of the preincorporation agreement.
• C) an agreement with Jones Corp., Benito, and their third party, wherein all agree that Jones Corp. will be substituted for Benito.
• D) another preincorporation contract with the third party.

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Definitions:

Normative Social Influence

The influence to conform with the positive expectations of others, often to gain approval or avoid social sanctions, unrelated to actual beliefs or facts.

Cognitive Dissonance

The unsettling sensation experienced when a person simultaneously upholds multiple conflicting beliefs, ideas, or values.

Group Members

Individuals who belong to a defined collective or team, sharing common goals or purposes.

Informational Social Influence

The process where individuals change their opinions or behavior in response to accessing new information or knowledge from others.