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Reflection and Discussion Forum Week 14
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:
Summarize the required elements for the various business
entities described in Chapter 17, providing examples of each
and specifically describing the similarities and differences in
each.
What factors would be considered when a director of a company
makes a large trade of the company’s stock?
Week 14 - Short Essays
Question I -
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 II -
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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Reflection and Discussion Forum Week 14Reflect on the assign.docx

  • 1. Reflection and Discussion Forum Week 14 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: Summarize the required elements for the various business entities described in Chapter 17, providing examples of each and specifically describing the similarities and differences in each. What factors would be considered when a director of a company makes a large trade of the company’s stock? Week 14 - Short Essays Question I - 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
  • 2. the farmer? Question II - 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?