The Legal Environment of Business: Text and Cases
9th Edition
ISBN: 9781305764460
Author: Frank B Cross/ Roger LeRoy Miller
Publisher: CENGAGE C
expand_more
expand_more
format_list_bulleted
Question
Chapter 28, Problem 2BS
Summary Introduction
Case summary: Company HC has 30,000 common shares that are outstanding. The shareholders belong to several states. The company planned to split its 30,000 shares as two for one.
To find : The need to register the 30,000 shares after the spilt.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
1. Exempt from the registration requirement of the Securities Act of 1933 are offerings of securities
a. made to a small number of knowledgeable investors.
b. issued by for-profit organizations.
c. involving a large dollar amount.
d. only for large organizations that are for-profit.
2. Global Investments is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can
a.not become a member but can participate.
b. become a member and participate.c. not become a member or participate.
d. Become a member but cannot otherwise participate.
3. Quorum requirements include _________
a. number of decision-makers that must be present before business can be conducted.
b. how often decision-makers must meet each year.
c. maximum number of shareholders allowed in for-profit companies.
d. all other answer choices
4. Fiduciary duties of the directors and officers include
a.duty of care
b. duty of loyalty
c.…
Briefly explain the liability of:(a) A director of a private limited liability company.(b) A partner of a partnership.(c) A sole trader.(d) A private limited company.
Proposed company (closed company or company who filed bankruptcy) not aquired and nor merge and give why is it closed.
Chapter 28 Solutions
The Legal Environment of Business: Text and Cases
Knowledge Booster
Similar questions
- James and John are directors of ‘Cakes & Frozen Novelties Company Limited.’ Peter, Paul andDavid are shareholders. The company has been in operation for four years. The company has notmade any profits since its inception but James and John decided to declare dividends from thecompany’s capital reserves. The company has 10 million shares that were not distributed. Jameswent ahead and sold the shares to his wife, who is not currently a member of the company.Peter enquired as to whether or not the company can just purchase the shares issued, as there aremany different types of shares available. Paul noted that this is possible but pointed out thatRedeemable shares have particular features and certain procedures must be followed in order toredeem. He also stated three ways in which the company must finance these redeemable shares.James asked about the effect of the redeemable shares. John was puzzled and asked how acompany can redeem its share capital, especially when there is a…arrow_forwardCurrent Attempt in Progress Blossom Co. had these transactions during the current period. June 12 Issued 52,000 shares of $3 stated value common stock for cash of $260,000. July 11 Issued 2,080 shares of $100 par value preferred stock for cash at $108 per share. Nov. 28 Purchased 2,080 shares of treasury stock for $10,400. Prepare the journal entries for the preceding transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Creditarrow_forwardCompanies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?arrow_forward
- P&G PHI M LIFE An AIA Group Company MERALCO SAN MIGUEL CORPORATION Assessment Wite true if the statement is correct and write false if not Al crporaters are subsribers but subsuribers need not be an incorporator 2. The Corporate Treasurer of a corporation must be a director. Death of shareholder will not dissalve the corporation 4 A corporation can come into existence by mere agreement of the parties as in the case of partnerships S Acorporation is created by agreement of the sharehalders. The paid-up capital of a Plippine corporation must not be less than Php S00.00. 7Any Individual shareholden in a corporation may personally be held lable for all debts Inuered by the corporation L Al incerporators are corporators of a corporation. S A corporatlen has continulty of existence which permits the business to continue epardiess of changes in ownership or the death of shareholders 10 Acorportatien or a partnership can be a Incorporator but not a corporator. 11. Corparate Secretary must be a…arrow_forwardhi can i get help with these please?arrow_forwardIf ABC Corporation will increase its authorized capital stock, the Corporation Code requires - a. the approval of the majority of the Board of Directors only. b. the approval of the majority of the stockholders and the Board of Directors. c. the approval of 2/3 of the shareholders of the outstanding capital stock as well as the approval of the Securities and Exchange Commission. d. the approval of the majority of the Board of Directors and approval of the shareholders holding 2/3 share of the outstanding capital stock.arrow_forward
- Considering the following statements true or false. 1.Circumstances whereby the CFA member breaches client confidentiality are acceptable in circumstances directed by the client in writing. 2.Mosaic theory damages the interest of all investors by disrupting the smooth functioning of forward markets and lowering investor confidence. 3.As a philosophical ethical principle, when analysing actions undertaken, it is acceptable that an act can be seen as good or bad regardless of the underlying/relevant circumstances. 4.As part of Standard IV, as a superior, it is not your responsibility to ensure ethical behaviour of your subordinates. 5.Premium investment services should be designed in such a way that, while beneficial to those who are in a position to take advantage of them, they are not unfairly disadvantages to other classes of clients.arrow_forwardShares of Unity Software, which provides technology to video game developers, advanced as much as 48 per cent in their public debut on Friday, lifting the valuation of the company briefly above $20bn… Its stock rose as high as $76.79 in early trading after the company sold 25m shares at $52 a piece, raising $1.3bn in proceeds. Unity’s shares, which trade on the New York Stock Exchange… slipped from their early highs and ended the day up 31 per cent. The trading debut came after Unity increased the range marketed to investors from between $34 and $42 per share to between $44 and $48 per share on Wednesday, reflecting strong demand for its offering. The company estimates that half of the top 1,000 mobile games on Apple’s App Store and Google Play were made using its platform, which has expanded to help game developers make money from advertising. The business made a net loss of $163.2m on revenues of $541.8m last year, which grew 42 per cent from the previous year. The IPO comes…arrow_forward1. The reasons for involving more than one person in ownership or operation of a business entity do not include: a. The ability to shift risks to third persons. b. The ability to diversify risks. c. The ability to achieve economies of scale. d. All of the above are reasons to involve more than one person. 2. “Agency cost” means: a. The commission that is paid an agent for obtaining a contract. b. The pay due to one’s employees. c. The costs to the principal associated with an agent’s motive to serve him or herself. d. Profit-sharing or other arrangements to align an agent’s motives with those of his or her principal. 3. “Limited liability” means: a. That an investor cannot lose his or her investment. b. That an investor cannot lose more than his or her investment. c. That an investor can lose his or her investment and may be responsible for a designated percentage or amount in excess of his or her investment. d. That an investor must refrain from active management in order to limit…arrow_forward
- What does the term "Affiliated Party mean? ΟΛ Any person who directs or participates in the conduct of alluss of a bourse and who is an officer, stockholder, owney or other person who directly controls a com Any person who is related to the writing insurance agent and works for the same based insurance comparty Any person who has the authority to bind the insurer to the risk of being assumed without requiring a bone or appointment Every group, association or other organization that prepares policy forms and makes underwriting rules axikvit to the setting of rates and underwing clos B. OC O Darrow_forwardSubject: acountingarrow_forward4. Which of the following statements are true about an S Corporation? Group of answer choices A. Shareholders of an S Corps have limited liability B. Shareholders of an S Corps are liable for all profits and losses as a flow-through tax entity C. S Corps only have one class of stock D. S Corps limit the number of shareholders to no more than 100 E. All of the above are truearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education