Asked by
Torezz Alexander
on Oct 15, 2024
Verified
A corporation may not legally give shares of its stock to promoters in exchange for their services in organizing the corporation.
Corporation
A legal entity formed by individuals, stockholders, or shareholders, with its own rights and liabilities separate from those of its members.
Promoters
Individuals or companies that are involved in the planning and establishment of a company, or those who actively support or recommend something.
- Understand the procedure involved in issuing stock and assessing the value of non-cash assets that are exchanged for shares.
Verified Answer
MB
Learning Objectives
- Understand the procedure involved in issuing stock and assessing the value of non-cash assets that are exchanged for shares.