Helen is a promoter who, prior to forming Bayne Corp., contracted to purchase tile-manufacturing machinery from Owen Machinery Inc. The contract was negotiated and entered into in the name of Bayne Corp. Subsequently, a certificate of incorporation was issued to Bayne Corp. Which of the following statements is true of this scenario? A. style="background-color:transparent; color:rgb (0,0,0); ">Only Bayne Corp. is liable for the contract with Owen Machinery Inc. as it received its certificate of incorporation. B. Helen would be liable for the contract with Owen Machinery Inc.
C. If the board of directors of Bayne Corp. issues a suitable resolution, Helen would be relieved from all liability for the contract with Owen Machinery Inc.
D. Since Bayne Corp. was not in existence at the time the contract was negotiated, the contract is void.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Helen is a promoter who, prior to forming Bayne Corp., contracted to purchase tile-manufacturing machinery from Owen Machinery Inc. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is the controlling account for the amounts owed to individual creditors?
Answers (2)
At the time a $450 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of $100. The vouchers include: postage, $90; business lunches, $135; delivery fees, $80; and office supplies, $45.
Answers (1)
Jan wants to king a block of text in the right. What command allows her to do this? A. Justification B. Indent C. Window control D. Line and page break
Answers (1)
An advertisement in the local paper offers a "fully loaded" car that is only six months old and has only been driven 5,000 miles at a price that is 20 percent lower than the average selling price of a brand new car with the same options.
Answers (1)
Advertising, personal selling, sales promotion, public relations, and direct marketing are marketing communications alternatives that make up a firm's
Answers (1)
New Questions in Business
Macrosoft Company reports net income of $65,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $60,000, $12,000, and $18,000, respectively.
No Answers
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)