The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Question
Chapter 18, Problem 1BS
(a)
Summary Introduction
Case summary: Persons C, O, and T want to establish a business of digital tablets. Person P tells that he will be in favor for the formation of the corporation. P enters into a contract with O for purchasing a piece of land. Person O is not aware of the way a corporation is formed at the time of signing the contract. P makes a contract with person B to construct a small plant on the property. The contract with person B is conditional on the formation of the corporation. The P secures all necessary documents and capitalization. P filed the articles of incorporation of the corporation.
To find:The liability of the corporation and person P for contracts signed with person O and person B.
(b)
Summary Introduction
Case summary: Persons C, O, and T want to establish a business of digital tablets. Person P tells that he will be in favor for the formation of the corporation. P enters into a contract with O for purchasing a piece of land. Person O is not aware of the way a corporation is formed at the time of signing the contract. P makes a contract with person B to construct a small plant on the property. The contract with person B is conditional on the formation of the corporation. The P secures all necessary documents and capitalization. P filed the articles of incorporation of the corporation.
To find: The liability of the corporation to the contract of person B once it is formed.
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BUSINESS LAW (263)
Which of the following statements is correct regarding a limited partnership?
Group of answer choices
The general partner must make a capital contribution.
It can only be created pursuant to a statute providing for the formation of limited partnerships.
It can be created with limited liability for all partners.
At least one general partner must also be a limited partner.
To Partner or Not to Partner
John Willis, who is 27 and single, had just completed his fifth year of employment as a carpenter for a very small homebuilder. His boss, the sole owner of the company, is Tyrone Young. A few days ago, Tyrone asked John if he would like to become a partner, which he could do by contributing $70,000. In turn, John would receive 40 percent of all prof- its earned by the business. John had saved $30,000 and could borrow the balance from his grandmother at a low-interest rate, but he would have to pay her back within 15 years.
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Tyrone: Sure. I struggled with these issues…
Chapter 18 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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