Under the MBCA,the corporation can issue shares in return for the promoters' preincorporation service.

Question

Quizplus · Accepted Answer

The Model Business Corporation Act (MBCA) provides provisions for issuing shares in return for the promoters' preincorporation service. This is a common practice in many corporations as it helps in funding the initial costs of setting up the business, and the MBCA recognizes this as a legitimate way of raising capital.

Under the MBCA,the Corporation Can Issue Shares in Return for the Promoters