Assume the same facts as Question 38 that George W. and Jeb…
Assume the same facts as Question 38 that George W. and Jeb agree that George W.’s contribution of services to the LLC will be valued as a $200,000 contribution, that Jeb’s contribution is the $100,000 cash he paid, and that there is no specific agreement on distributions by the LLC. There is also no agreement between George W. and Jeb regarding the transfer of membership interests.
Read DetailsPenny, a director of CVS, the nation’s second largest pharma…
Penny, a director of CVS, the nation’s second largest pharmacy chain with approximately 7,600 stores, has contacted you for advice on the following matters under consideration by the CVS board: Discontinuing the sale of tobacco products at all CVS stores. Doing so will cost CVS at least $3 billion in revenue for its next fiscal year. The primary motivation is to disassociate the company from products that pose serious health risks to users. Installing solar panels on CVS stores located in the Sunbelt. Doing so will cost CVS billions of dollars, which is unlikely to be recouped through reduced electric bills. The primary motivation is not financial but to reduce CVS’s carbon footprint. Paying rank and file CVS store employees 20% over prevailing market wages. This move is also expected to cost CVS billions of dollars. The primary motivation is decrease the number of working poor. Penny is leaning towards voting in favor of all three initiatives but wants to know whether doing so will expose her or the board to legal liability under state corporate law. Which statement is most true regarding Penny’s exposure to liability?
Read Details