Why is it preferable for risk management to use a shelf company as the vehicle for taking prompt advantage of a valuable business opportunity?
A) Outsiders retain liability if the corporation fails to come into existence.
B) It facilitates direct entrance into contractual obligations by the corporation.
C) It facilitates the ability of promoters to sign in a personal capacity.
D) Outsiders are restricted from relying on the apparent authority of agents.

Question

Quizplus · Accepted Answer

Shelf companies are already established entities, which means they can immediately engage in contracts and business activities without the delays associated with setting up a new corporation. This allows for quick action on business opportunities.

Why Is It Preferable for Risk Management to Use a Shelf