The president of EcoAgents must affix the company's corporate seal to the bank's lending agreement he signed because this form of business entity lacks legal capacity to borrow capital.

Question

Quizplus · Accepted Answer

The statement is incorrect. A corporation, even though it is a legal entity separate from its owners, has the legal capacity to borrow capital and sign agreements without the need for affixing a corporate seal.

The President of EcoAgents Must Affix the Company's Corporate Seal