The costs of bringing a corporation into existence,including legal fees and promoter fees,are called:
A)Minimum legal capital.
B)Stock subscriptions.
C)Organization expenses.
D)Selling expenses.
E)Prepaid fees.

Question

Quizplus · Accepted Answer

The costs of bringing a corporation into existence, which may include legal fees, promoter fees, and other expenses incurred during the process of organizing a new corporation, are known as organization expenses. Minimum legal capital refers to the minimum amount of capital required by law to start a corporation, while stock subscriptions refer to the commitments made by investors to purchase shares in the new corporation. Selling expenses and prepaid fees are not typically associated with the process of forming a corporation.

The Costs of Bringing a Corporation into Existence,including Legal Fees