Nero Opened Oh! Fudge!, a Candy Store, as a Corporation

question 72

Multiple Choice

Nero opened Oh! Fudge!, a candy store, as a corporation. When doing busi?ness on behalf of the store, to avoid personal liability, Nero should sign contracts

• A) as an express agent for the corporation.
• B) as an express party to the contract.
• C) as an express agent and a party to the contract.
• D) under a false name.

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Definitions:

Premium on Bonds Payable

The excess of a bond's sale price over its principal amount.

Bonds Payable

A long-term liability account that records the amounts owed by a company to bondholders until the debt’s maturity date.

Installment Note

A debt or loan that is repaid over time with a set number of scheduled payments, typically including both principal and interest.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, payable over a certain period to the lender as compensation for the loan.