Under the Revised MBCA's Liability Rules for Defective Incorporation

question 4

Multiple Choice

Under the revised MBCA's liability rules for defective incorporation:

• A)the filing of the articles of incorporation,evidenced by a return of the copy stamped by secretary of state,is conclusive proof of incorporation.
• B)liability will never be imposed on promoters who participated in management and policy decisions.
• C)the issuance of the certificate of incorporation is conclusive proof of incorporation to the corporate status,except a quo warranto action brought by the secretary of state.
• D)managers will be released from any liability in excess of their initial investment. The filing of the articles of incorporation,evidenced by the return of the copy stamped by the secretary of state,is conclusive proof of incorporation under the revised MBCA.

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Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Fresh Fruit Smoothies

Blended beverages made from fresh fruits, often combined with ice, yogurt, or milk, offering a healthy and refreshing option.

Distributorship

An arrangement in which a manufacturer or another supplier grants a business the right to sell its products.

Manufactured

The process of converting raw materials into finished goods through the use of equipment, labor, and processes.