Kizspy Question: 38
(Choose 1 answer)
Which of the following accurately describes the process by which a corporation becomes bound by contracts
made by the promoter?
A. The corporation automatically becomes a party to contracts made by the promoter upon its incorporation.
B. The promoter is solely responsible for ensuring that contracts made benefit the corporation.
C. The corporation typically approves or adopts contracts made by the promoter after its incorporation.
D. Contracts made by the promoter are invalid unless specifically ratified by the shareholders of the
corporation.
