In Creating ABZ Inc

question 34

Essay

In creating ABZ Inc. ,Newman and Zimmer followed all the steps in the incorporation process as authorized in their state's incorporation statute except for the appointment of a statutory agent.They were never informed of the oversight and proceeded under the assumption that they were properly incorporated.Several years later,a customer was injured by one of their products.The customer's lawyer told Newman and Zimmer that they were individually liable because ABZ Inc.was not properly incorporated.Was the lawyer correct? Explain.

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Definitions:

Competencies

A mix of knowledge, skills, behaviors, and attitudes that a person needs to be effective in a wide range of jobs and various types of organizations.

Performance

The act of carrying out a task or the level of efficiency and effectiveness with which it is executed.

Skill-Based Pay

A compensation system that determines pay levels based on the skills or proficiency levels employees achieve.

Training Costs

Expenses associated with developing and delivering training programs to improve employee skills and knowledge.