Asked by Nikita Verma on Jul 05, 2024

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Promoters raise capital for an infant corporation by making subscription agreements with subscribers.

Promoters

Individuals or companies that organize and finance the formation of a corporation or event.

Subscription Agreements

Contracts between a company and investors, detailing the purchase of shares of the company by the investors.

Infant Corporation

A term used to describe a corporation in its early stage of existence, typically considered less capable of meeting legal or financial commitments.

  • Comprehend the management structure of corporations and the role of shareholders, directors, and officers.
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ZK
Zybrea KnightJul 06, 2024
Final Answer :
True
Explanation :
Promoters begin the corporate creation and organization process by arranging for necessary capital,financing,and licenses.Promoters raise capital for the infant corporation by making subscription agreements with subscribers (investors)in which the subscribers agree to purchase stock in the new corporation.