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1.Which of the following statements concerning promoters is correct?
A An accountant who acts in a professional capacity in the formation of a company is a promoter
B A promoter may not make a profit as a result of their position
C A promoter that acts as an agent for others must not put themselves into a position where their own interests clash with that of the company they are forming
D A promoter may not own shares in the company that they are forming
2.Which TWO of the following are methods that a promoter can use to avoid liability on pre-incorporation contracts?
(1) Signing the pre-incorporation contract 'on behalf of the company'
(2) Executing the pre-incorporation contract as a deed
(3) Buying an 'off-the-shelf' company
(4) Novating the contract
A 1 and 2
B 1 and 3
C 2 and 3
D 3 and 4
