Chapter 1, Problem 1QAP

Tristan is thinking about purchasing stock in a corporation. Specifically, Tristan has asked you to explain to him what the terms'membership' and'shareholdership' represent, as well as the many methods in which someone might become a member of the organization. He also wants you to clarify who would be qualified to become a member, as well as how many members a corporation is allowed to have. Finally, Tristan inquires as to how a person might become no longer a member of a corporation.

Tristan is considering buying shares in a company. Tristan asks you to explain to him what is meant by the terms ‘member’ and ‘shareholder’, and the different ways in which a person may become a member. He also asks you to explain who may be eligible to become a member, and how many members a company is permitted to have. Finally, Tristan asks: how does a person cease to be a member of a company?   The solution to this questions should be in line with the rules and section of Australian Consumer LAW and ASIC

Robert is the CEO of a closely held business, and he would like to provide life insurance to all of his employees as a fringe benefit. Robert would like life insurance that permits him to pay the premium, so long as it is deductible as a business expense and permits the employee to designate the beneficiary of the policy. Which one of the following is the most appropriate insurance product for Robert's situation? A)Robert should enter into an entity buy-sell agreement with each employee using cash value life insurance.   B)Robert should provide group term life insurance.   C)Robert should provide key person life insurance.   D)Robert should provide split-dollar life insurance.

The first step in forming a sole proprietorship is filing out the appropriate paperwork and paying the necessary filing fees with the secretary of state in the state where the business will operate. True false S corporations and closed corporations' earnings are exempt from federal and state income taxes based on a commitment to reinvest in local communities. True false

Marty Byrd is debating setting up his new business venture as a corporation. He comes to you for advice. What would you tell him? Include at least 3 advangates and 1 disadvantage to incorporating

Write a letter advising a hypothetical sole proprietor to choose another form of business ownership. By definition, a sole proprietorship is an unincorporated business owned by one person known as the sole proprietor. The majority of U.S. businesses are owned and operated as sole proprietorships.  write a letter to a hypothetical sole proprietor explaining why he or she should convert the sole proprietorship to another form of business ownership (for example, a traditional "C" corporation, an "S" corporation, or a limited liability company).

In the wake of acquiring his shares, you're asked by Tristan to explain to him what a member's register is, what information it contains, and whether or not all businesses are required to have one. Upon hearing that there is a register, Tristan becomes quite curious. He asks you if he may check the one where his information are kept, and if so, where. Tristan confides in you that if he has access to all of the members' personal information, he plans to sell it to commercial call centers and socio-economic survey research firms. It's a mystery to Tristan why only a judge can make corrections in the members registry. Give Tristan some advice.