Self Check Chapter 42 Quiz (WK3)

Self Check Chapter 42 Quiz (WK3) - Self Check Chapter 42...

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Self Check Chapter 42 Quiz (WK3) 1 A corporation's promoter is not an agent of the corporation. Nevertheless, she owes a  fiduciary duty to the corporation. A) True B) False 2 If a novation occurs on a preincorporation contract, the corporation becomes liable on  the contract. However, the promoter is not released from liability. A) True B) False 3 The bylaws are the basic operating agreement governing corporate affairs. A) True B) False 4 Valentine, Inc.'s articles of incorporation permit the company to sell 1,000,000 shares,  although it has only sold 100. This means that there are 999,900 outstanding shares in  the company. A) True B) False 5 1850 North Hill Ave. Co. entered a lease agreement listing its name "1850 North Hill  Ave. Co., Inc." although it had not filed articles of incorporation. Under these  circumstances, the landlord cannot hold the company liable if it later incorporates since  it was not a corporation at the time the contract was entered. A)
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This note was uploaded on 06/08/2010 for the course MG 261DLB taught by Professor Johnhutcherson during the Spring '10 term at Park.

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Self Check Chapter 42 Quiz (WK3) - Self Check Chapter 42...

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