Esther and Salim are promoters for Kale Inc. Prior to its incorporation, Esther negotiated several pre-incorporation contracts with Ian, an investor. She signed each contract in the name of Kale Inc. Kale subsequently was incorporated, but the Kale Board of Directors refused to adopt the contracts. Ian later sues Kale, Esther, and Salim on the contracts.
Which of the following statements is true of this case?
a. Only Kale and Esther are liable as Esther, a promoter of Kale, negotiated several pre-incorporation contracts with Ian.
b. Esther is solely liable as she signed each contract in the name of Kale Inc.
c. Kale, Esther, and Salim are liable as they are sued by Ian.
d. Esther and Salim are liable as they are promoters of Kale Inc.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Esther and Salim are promoters for Kale Inc. Prior to its incorporation, Esther negotiated several pre-incorporation contracts with Ian, an ...” 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
The business plan has two main purposes: Select one: a. it guarantees success and can be used to easily secure financing. b. provides a document customers can review; used as a production tool. c.
Answers (1)
According to the Securities and Exchange Commission (SEC), a person should be considered to be a temporary insider if that person conveys nonpublic information that was to have been kept confidential. This philosophy has become known as the a.
Answers (1)
Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000.
Answers (1)
Advertising objectives should Group of answer choices be specific, but not as specific as the objectives for the personal selling effort. be set by the specialists-the creative people at the advertising agency.
Answers (1)
A production possibilities frontier identifies the dollar cost of producing a good or service in an economy. True or False
Answers (1)
New Questions in Business
The structural support structure must lift the pipeline above the ground to allow free passage of wildlife under the pipeline. The loading on each truss support must be determined by calculating the weight of oil and of the pipe over each support.
Answers (1)
How is a gas different from a solid or a liquid? A. A gas is made of tiny particles. B. A gas has volume. C. A gas expands to fill the container. D. A gas has density. TY
Answers (1)
Property-tax revenues for the county were reported at $770,000 on its governmental funds statement, but property-tax revenues on the county's government-wide statement of activities were reported at $800,000. Why did this difference arise?
Answers (1)
At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production.
Answers (1)
Sunny Day Manufacturing Company has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of the year.
Answers (1)