Which of the following is not true of promoters of a corporation?
A) They arrange for capital and financing to start a corporation.
B) They assemble the necessary assets to start a corporation.
C) They attend to the actual legal formation of a corporation.
D) They continue to solicit capital whenever needed after incorporation.

Question

Quizplus · Accepted Answer

Promoters of a corporation are primarily involved in the initial stages of setting up a corporation, including arranging for capital and financing, assembling necessary assets, and attending to its legal formation. Their role typically diminishes after the corporation has been formed, and the responsibility for soliciting additional capital when needed usually falls to the corporation's officers and directors, not the initial promoters.

Which of the Following Is Not True of Promoters of a Corporation