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BLAW2003 assignment 2

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Question;BLAW 2003 SECOND ASSIGNMENT;DUE: A;typed, hard copy is due at the beginning of class on, November 28, 2014. Late papers will be penalized 2% per day and;will not be accepted after December 3..;Late papers may be submitted as a word document by email (mgibbons@georgebrown.ca) but if you would like comments, you;must give me a hard copy. I will;acknowledge receipt of emailed papers, please check for confirmation.;Weight: 15% of the final grade;This is an individual assignment. Please proof read carefully as marks will be;lost for poor spelling and/or grammar.;Be sure to set off all quotations within quotation marks and to provide footnotes. Remember that duplicate papers will both;fail.;Your friend Jennifer is excited to;start a new business which she is confident will be successful. However since she can only contribute $10 000;to the business, she needs her father?s (Robert) financial assistance for start;up costs. Her father is able to;contribute up to $50 000 but wants a number of safeguards. He wants to know that he will not lose more;than his investment, he wants a 5% return on his investment, he wants to take;an active role in management (since he does not trust Jennifer?s business;knowledge) and he does not want any liability for anything which might go wrong. He probably cannot achieve all of these;goals. Advise Robert of the consequences;of the following with regard to his stated goals;1.;If;Robert and Jennifer enter into a partnership, to what extent can he achieve his;goals? Explain. (4 marks);2.;How;could Robert become a limited partner? How would this affect his goals? What would be his legal rights and;obligations? (4 marks);3.;If;the business were to incorporate in Ontario, what capital structure do you;recommend? (Hint: Robert and Jennifer are investing different amounts of;money). (10 marks);4.;If;the business were to operate as a closely held business and Robert was a;shareholder, what are his legal rights and obligations? Which of his goals could he realistically;achieve? Explain. (2 marks);5.;If;the business were to operate as a closely held business and Robert lent money;to the corporation what are his legal rights and obligations? Which of his goals could he realistically;achieve? Explain. (2 marks);6.;If;the business were to operate as a closely held business and Robert was a shareholder;and a director, what are his legal rights and obligations? Your answer should;include a discussion of potential areas of director?s liability. Which of his goals could he realistically;achieve? Explain. (5 marks);7.;Bearing;in mind all of Robert?s goals, how would you advise him to proceed? Why? You;should also consider the possibility that Jennifer owns the business as sole;proprietor and Robert gives her a loan. (3 marks);Your answer must be;specific in providing clear advice to Robert.;Do not simply summarize the material in the textbook. Demonstrate your knowledge and understanding;by providing Robert with the information he needs for his specific situation.;Note that question 3 is worth 10 marks ? this would suggest that a detailed;analysis is required.

 

Paper#58864 | Written in 18-Jul-2015

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