Regarding Promoters,which of the Following Is False

question 55

Multiple Choice

Regarding promoters,which of the following is false?

• A)Promoters are agents for the company being formed.
• B)A promoter may insert a clause into a contract with a supplier stating that the corporation's adoption of the contract terminates the liability of the promoter.
• C)Promoters prepare the corporation's incorporation papers.
• D)Promoters raise capital for the infant corporation.
• E)Promoters can purchase buildings for the corporation.

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Definitions:

Optimal Level

The most favorable point, amount, or degree of something for a particular situation or purpose.

Loan Terms

The conditions and agreements under which a loan is provided, including the interest rate, repayment schedule, and other obligations.

Cash on Hand

Refers to the total amount of liquid assets that are accessible to a company or individual at any given time.

Partnership Ownership

A form of business organization in which two or more individuals share ownership, profits, and liabilities.