William Rubin, president of Tri-State Mining Co., sought a loan from Bankers Trust Co. To secure the loan, he pledged worthless stock in six companies and represented that the stock was worth $1.7 million. He also arranged for fictitious quotations to appear in an investment repo...
15 Aug 2021Dubois sold Hocking a condominium that included an option to participate in a rental pool arrangement. Hocking elected to participate in the arrangement. Under it, the rental pools agent rented condominiums, pooled the income, and after deducting a management fee, distributed the...
15 Aug 2021International Advertising, Inc. (IA), would like to raise $10 million in new capital to open new offices in Eastern Europe. It believes it could raise the capital by selling shares of stock to its directors and executive officers as well as to its bank and a large insurance compa...
15 Aug 2021Mary Dale worked in the law office of Emory Stone, an attorney practicing securities law. While proofreading Marys keying of a document relating to the merger of two computer software companies, Emory joked to her, "If I werent so ethical, I could make a few bucks on this info. N...
15 Aug 2021Dorozhko hacked into the corporate network of Thomson Financial on October 17, 2007, at 2:15 p.m. and gained access to IMS Healths soon-to-be-released negative earnings announcement due out at 5:00 p.m. He purchased $41,670 worth of put options. IMS shares were trading at $29.56 ...
15 Aug 2021The following transactions in Heritage Cosmetics Co., Inc., stock took place: On January 21, Jones, the corporations vice president of marketing, purchased 1,000 shares of stock at $25 per share. On January 24, Sylvan, a local banker and director of Heritage, purchased 500 shares...
15 Aug 2021Minnesota Prostate Research Labs, Inc. (MPRL), made an initial public offering of its shares in August 1998. It stated in its prospectus that research on laboratory animals indicated that the lab may have discovered a cure for prostate cancer in humans. MPRL pointed out as well t...
15 Aug 2021Business Week magazine is sent to a national distributor of magazines, Curtis Circulations Co., which sells the magazines to various wholesalers, including Hudson News. Business Week publishes a column entitled "Inside Wall Street," and the evidence shows that stocks discussed fa...
15 Aug 2021Corporation A was involved in merger discussions with Corporation B. During this time, Corporation A made public statements denying that any merger negotiations were taking place or that it knew of any corporate developments that would account for heavy trading activity in its st...
15 Aug 2021Lawrence D. Polizzotto, a former vice president at First Solar Inc., spoke in one-on-one phone calls with some analysts and investors. He stated that the company was unlikely to receive a much-anticipated loan guarantee from the U.S. Department of Energy. The next morning, this i...
15 Aug 2021The Case of the Dastardly MisappropriatorJames OHagan was a partner in the law firm of Dorsey & Whitney in Minneapolis, Minnesota. In July 1988, Grand Metropolitan PLC, a company based in London, England, retained Dorsey & Whitney as local counsel to represent Grand Met regarding...
15 Aug 2021The Case of the Dastardly MisappropriatorJames OHagan was a partner in the law firm of Dorsey & Whitney in Minneapolis, Minnesota. In July 1988, Grand Metropolitan PLC, a company based in London, England, retained Dorsey & Whitney as local counsel to represent Grand Met regarding...
15 Aug 2021The Case of the Dastardly MisappropriatorJames OHagan was a partner in the law firm of Dorsey & Whitney in Minneapolis, Minnesota. In July 1988, Grand Metropolitan PLC, a company based in London, England, retained Dorsey & Whitney as local counsel to represent Grand Met regarding...
15 Aug 2021Rule No. 1 for Corporate Finance Executives: Be Very CarefulAbout What You SayMatrixx develops, manufactures, and markets over-the-counter pharmaceutical products. Its core product, Zicam Cold Remedy, with its active ingredient zinc gluconate, accounted for approximately 70 perce...
15 Aug 2021Rule No. 1 for Corporate Finance Executives: Be Very CarefulAbout What You SayMatrixx develops, manufactures, and markets over-the-counter pharmaceutical products. Its core product, Zicam Cold Remedy, with its active ingredient zinc gluconate, accounted for approximately 70 perce...
15 Aug 2021Rule No. 1 for Corporate Finance Executives: Be Very CarefulAbout What You SayMatrixx develops, manufactures, and markets over-the-counter pharmaceutical products. Its core product, Zicam Cold Remedy, with its active ingredient zinc gluconate, accounted for approximately 70 perce...
15 Aug 2021Under the Revised Model Business Corporation Act, a dissenting stockholders appraisal right generally applies to which of the following corporate actions? >ConsolidationsShares from mergersa.YesYesb.YesNoc.NoYesd.NoNo
15 Aug 2021Price owns 2,000 shares of Universal Corp.s $10 cumulative preferred stock. During its first year of operations, cash dividends of $5 per share were declared on the preferred stock but were never paid. In the second year, dividends on the preferred stock were neither declared nor...
15 Aug 2021The limited liability of a stockholder in a closely held corporation may be challenged successfully if the stockholder:a.Undercapitalized the corporation when it was formed.b.Formed the corporation solely to have limited personal liability.c.Sold property to the corporation.d.Was...
15 Aug 2021A stockholders right to inspect books and records of a corporation will be properly denied if the stockholder:a.Wants to use corporate stockholder records for a personal business.b.Employs an agent to inspect the books and records.c.Intends to commence a stockholders derivative s...
15 Aug 2021Ronald Naquin, an employee of Air Engineered Systems & Services, Inc., owned one-third of its outstanding shares. After six years, he was fired and an offer was made to buy out his interest in Air Engineered at a price that Naquin thought inadequate. He then formed a competing bu...
15 Aug 2021Birt was a hospital patient. The doctor who treated him was a shareholder of a professional corporation organized under the Indiana Medical Professional Corporation Act. Birt claimed that the doctor who treated him was guilty of malpractice, and he sued the doctor. He also sued t...
15 Aug 2021Linhart owned shares of stock in First National Bank. She borrowed money from the bank and pledged the stock as security. She later decided to transfer 70 head of cattle and the shares of stock to her son, but she could not deliver the share certificate to him because it was held...
15 Aug 2021On March 3, 2002, pursuant to a public offering, First All State Trucking Corp. (FAST) issued securities to investors in denominations of $1,000. The interest rate was 7 percent per year payable semiannually, and the maturity date was March 3, 2010. The rights and obligations of ...
15 Aug 2021Ibanez owned shares of stock in Farmers Underwriters. He left the stock certificate lying on top of his desk in his office. Many persons continually passed through the office, and one day Ibanez realized that someone had taken the certificate from the top of his desk. Ibanez appl...
15 Aug 2021Ed Klein was the sole shareholder, director, and chief executive officer of The Gun Exchange, Inc., a retail firearms dealership. The inventory of The Gun Exchange had been pledged as security for a $622,500 debt owed to InterFirst Bank. It also owed $231,484.60 to Sporting Goods...
15 Aug 2021Gladys Boles and 28 other owners of property at Hidden Valley Lakes Development sued the corporate developer, National Development Co. Inc. (NDC); NDCs parent, Sunstates Corporation; and the individual behind both corporations, Clyde Engle, for breach of contract and fraud. The c...
15 Aug 2021Ken and Charlotte Maschmeier were the majority shareholders of Southside Press; each owned 1,300 shares. Marty and Larry Maschmeier, who each owned 1,200 shares of the corporation, had a falling out with Ken and Charlotte and were terminated as employees of the business. Ken and ...
15 Aug 2021U.S. Die Casting, Inc., is a closely held Ohio corporation that owns 5 percent of Security First Corporation, a Delaware corporation. David Slyman is the president of U.S. Die and its sole shareholder. The defendant, Security First, entered into a merger agreement with Mid Am, In...
15 Aug 2021Siebrecht organized Siebrecht Realty Co., a corporation, and then transferred his building to the corporation in exchange for its stock. The corporation rented different parts of the building to different tenants. Elenkrieg, an employee of one of the tenants, fell and was injured...
15 Aug 2021The stock of West End Development Co. was subject to a transfer restriction. This restriction required that any shareholder selling shares first offer every other shareholder the right to purchase a proportion of the shares being sold. The proportions were to be the same as the p...
15 Aug 2021Equivest, a partnership, owned 10,000 shares of Altec International, Inc. Equivest pledged these shares to secure loans by Lloyds Bank. Sometime after pledging the stock, Equivest transferred beneficial ownership of 350 shares of Altec stock to Thorn Hoffman and 350 shares to Joh...
15 Aug 2021Tomlinson and Hubbard were two of five shareholders in Multimedia Software Distributors, a corporation. The corporation was formed in 1992 and filed for bankruptcy in 1994. In 1996, Tomlinson filed a claim in his own name, alleging that Hubbard had breached his fiduciary duties t...
15 Aug 2021Six members of the Weston family, who owned 6.8 percent of the stock of Weston Paper and Manufacturing Company, brought suit against three corporate directors and CFIS, a firm hired by the company to make the annual evaluation of the companys stock for allocating stock options to...
15 Aug 2021Monica Beam, a shareholder of Martha Stewart Living Omnimedia, Inc. (MSO), filed a derivative action against Martha Stewart and the other MSO board of directors, alleging that Stewart breached her duties to MSO by illegally selling ImClone stock and mishandling media attention, t...
15 Aug 2021Sometimes "Parents" Have to Pay the Rent in Business, TooInter-Tel is an Arizona corporation that designs, manufacturers, and sells telecommunication services primarily to businesses. Inter-Tel Technology Inc. (Technologies) operates Inter-Tels retail division. On July 2, 1998, T...
15 Aug 2021Sometimes "Parents" Have to Pay the Rent in Business, TooInter-Tel is an Arizona corporation that designs, manufacturers, and sells telecommunication services primarily to businesses. Inter-Tel Technology Inc. (Technologies) operates Inter-Tels retail division. On July 2, 1998, T...
15 Aug 2021Control of Coke-Anderson, S.C.: Its the Real Thing, Entitled to a PremiumPaul Warlick Jr. was the president, chief executive officer, and a stockholder of Coca-Cola Bottling Co. of Anderson, South Carolina (Coke-Anderson). He controlled 273.5 shares of stock of the total of 480 s...
15 Aug 2021Control of Coke-Anderson, S.C.: Its the Real Thing, Entitled to a PremiumPaul Warlick Jr. was the president, chief executive officer, and a stockholder of Coca-Cola Bottling Co. of Anderson, South Carolina (Coke-Anderson). He controlled 273.5 shares of stock of the total of 480 s...
15 Aug 2021Control of Coke-Anderson, S.C.: Its the Real Thing, Entitled to a PremiumPaul Warlick Jr. was the president, chief executive officer, and a stockholder of Coca-Cola Bottling Co. of Anderson, South Carolina (Coke-Anderson). He controlled 273.5 shares of stock of the total of 480 s...
15 Aug 2021In general, which of the following must be contained in articles of incorporation?a.The names of the states in which the corporation will be doing businessb.The name of the state in which the corporation will maintain its principal place of businessc.The names of the initial offi...
15 Aug 2021Rice is a promoter of a corporation to be known as Dex Corp. On January 1, 1985, Rice signed a nine-month contract with Roe, a CPA, which provided that Roe would perform certain accounting services for Dex. Rice did not disclose to Roe that Dex had not been formed. Prior to the i...
15 Aug 2021Which of the following statements is correct concerning the similarities between a limited partnership and a corporation?a.Each is created under a statute and must file a copy of its certificate with the proper state authorities.b.All corporate stockholders and all partners in a ...
15 Aug 2021William Sullivan was ousted from the presidency of the New England Patriots Football Club, Inc. Later, he borrowed $5,348,000 to buy 100 percent control of the voting shares of the corporation. A condition of the loan was that he reorganize the Patriots so that the income from th...
15 Aug 2021On August 19, 1980, Joan Ioviero injured her hand when she slipped and fell while leaving the dining room at the Hotel Excelsior in Venice, Italy. This hotel was owned by an Italian corporation, Cigahotels, S.p.A. (The designation S.p.A. stands for Societa per Azionean, the Itali...
15 Aug 2021Adams and two other persons were promoters for a new corporation, Aldrehn Theaters Co. The promoters retained Kridelbaugh to perform legal services in connection with the incorporation of the new business and promised to pay him $1,500. Aldrehn was incorporated through Kridelbaug...
15 Aug 2021The Seabrook Island Property Owners Association, Inc., is a nonprofit corporation organized under state law to maintain streets and open spaces owned by property owners of Seabrook Island. Seabrook Island Co. is the developer of Seabrook Island and has majority control of the boa...
15 Aug 2021Madison Associates purchased control of the majority of shares of 79 Realty Corp. from the Kimmelmans and the Zauders, who then resigned as directors. The Alpert group, which owned the remaining 26 percent of 79 Realty refused to sell their shares. Partners of Madison Associates ...
15 Aug 2021Emmick was a director and shareholder of Colonial Manors, Inc. (CM). He organized another corporation named Oahe Enterprises, Inc. To obtain shares of the Oahe stock, Emmick transferred CM shares arbitrarily valued by him at $19 per share to Oahe. The CM shares had a book value o...
15 Aug 2021The Community Youth Center (CYC) Corporation failed to pay its annual registration fee in 2000 and was automatically dissolved by the state corporation commission. CYC continued to operate and held itself out as a corporation well into 2005 when it obtained a loan from the First ...
15 Aug 2021