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Reflection and Discussion Forum Week 6


Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.


Also, provide a graduate-level response to each of the following questions:



  1. Discuss potential liability a principle may have to third parties based on the actions of an agent.  What factors may limit this liability?

  2. What general rights do shareholders hold in a corporation?  How do these rights vary, if at all, based on different classes of stock?

  3. Explain the difference in a corporate merger and a corporate consolidation, and include in your analysis supporting examples.



[Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion].


 [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]




 


Week 6 - Short Essays


Question I - Brandon installs sheds and storage buildings for Shedmax, LLC.  Brandon must be at work each day by 8:00 a.m. and is off at 5:00 p.m. and is paid at a rate of $12/hour.  Brandon uses tools provided by Shedmax to do his work.  However, when Brandon is completing the installation process, he is often working alone.  Is Brandon an employee of Shedmax or an independent contractor?  Give a reasoning for your answer.


Question II - Paul is the sole incorporator of Hemp Co., a company that processes hemp into clothing.  Prior to incorporation, Paul enters into a contract on Hemp Co.’s behalf with a local farmer for the purchase of the crop.  After formation of the corporation, the board does not ratify the contract because Paul bought the crop at 3 times the market price.  Who is liable to the farmer?


Question III - Tina Technology is looking to raise $85,000 worth of capital, and she is looking to raise that money through the internet and still fall under an SEC exemption.  How should Tina go about raising that money?  Due to the amount of capital she is looking to raise, will Tina be subject to any other special requirements?

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