Asked by Judith Parsons on Jun 30, 2024
Verified
The contracts Min-ji, Marcus, and Penelope made with their friends to buy stock are known by what term?
A) Promotion agreements
B) Capital agreements
C) Subscription agreements
D) Novation agreements
E) Acceptor agreements
Subscription Agreements
Legal agreements for the purchase of shares in a company, typically used in private placements, detailing the terms and conditions of the investment.
Incorporation Process
The legal procedure by which a business entity is formed as a corporation, involving registration with the state, drafting articles of incorporation, and meeting other regulatory requirements.
Capital
Financial assets or the financial value of assets, such as cash or goods, used by a company to fund its operations and facilitate its growth.
- Analyze the role and legal implications of corporate promoters and subscribers.
Verified Answer
HR
Haily RandallJul 05, 2024
Final Answer :
C
Explanation :
The contracts made with their friends to buy stock in the new corporation are known as subscription agreements. These are formal offers to buy shares in a company, typically used during the process of raising capital.
Learning Objectives
- Analyze the role and legal implications of corporate promoters and subscribers.