1.Directors have a Fiduciary relationship to the corporation and its shareholders. and exercise in reasonable care, a director may rely on information provided by accountants and

a. Lawyers

b. investment bankers

c. Lawyers and investment bankers

2.Any person who has the legal capacity to enter into a contract may enter into a partnership agreement who may validly enter into a partnership agreement

Individuals partnership corporations

1. Yes no yes
2. No no no
3. Yes yes no
4. Yes yes yes

3.George Julep was the principal promoter of the new corporation. Prior to its incorporation. Julep contracted to purchase $10,000 off inventory in the name of the Knew corporation. the seller was not aware that knew did not yet exist. who is liable on the contract?

1. Julep unless new adopts the contract.
2. Julep because of a breach of an agents warranty
3. knew because a promoter has apparent authority as an agent to enter into reincorporation contracts.
4. knew unless it expressly repudiates the contract.