Happy Harry Hoskins and Crabby Cynthia Crowders are organizing Red Lodge Metals Unlimited, Inc., to undertake a high risk gold mining venture in Canada. Mr. Hoskins and Ms.Crowders tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public.Mr. Hoskins and Ms. Crowders have decided to establish par value at $0.03 per share in order to appeal to a wide variety of potential investors. They believe that investorswould be more willing to invest in a company if investors received a large quantity of shares for what might appear to be a "bargain" price.Discussion:Are Mr. Hoskins and Ms. Crowders acting ethically? Please discuss.

Ethics refers to the moral values which state the process of performing the work in an effective as…

Answered: Happy Harry Hoskins and Crabby Cynthia…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Show your work. Make it clear what the final answer is.
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