Jane and Joan decide to open a plumbing business. Both contr…
Jane and Joan decide to open a plumbing business. Both contribute money to the business, but because Jane has expertise in plumbing, she makes all the management decisions. Joan decides not to participate in any of the day-to-day operations. Jane and Joan will split net income equally. This enterprise is:
Read DetailsCathy is an accountant with Discount Retail Corporation. Efr…
Cathy is an accountant with Discount Retail Corporation. Efrem buys Discount Retail stock and loses money on the investment. To recover from Cathy under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, Efrem must prove
Read DetailsAiling Company’s liabilities exceed its assets. Ailing hires…
Ailing Company’s liabilities exceed its assets. Ailing hires Brad, an accountant, to certify a balance sheet showing a positive net worth. Credit Bank relies on the balance sheet to make a loan to Ailing. The firm defaults on the loan. Under the Ultramares rule, Brad is most likely not liable because he
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