Liability of the Corporation








A promoter is personally liable for pre-incorporation contracts until the corporation:
Choice 1 ratifies the contracts
Choice 2 releases him or her
Choice 3 assumes the pre-incorporation contract by novation
Choice 4 none of the above
Which of the following would not be done by a promoter?
Choice 1 solicit subscriptions for corporate stock
Choice 2 order stationery for the corporation
Choice 3 purchase land for corporate offices
Choice 4 issue stock
Which of the following factors might cause a court to disregard the corporate entity and hold the shareholders personally liable for corporate debts and obligations?
Choice 1 the corporation is overcapitalized
Choice 2 too many shareholder or director meetings
Choice 3 personal and corporate interests are commingled
Choice 4 shareholders won't guarantee personal liability

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