Will smith jones prevail explain your answer

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Will Smith & Jones prevail? Explain your answer thoroughly. Yes, Smith & Jones prevails in the suit. Dan is liable under the contract. Dan, a promoter, signed a contract with Smith & Jones, Accountants. He is personally liable for any pre-incorporation contracts made with investors, accountants, or others on behalf of the future corporation (BUSINESS LAW - TEXT AND CASE, 14 th Edition, Chapter 39 Corporation Formation and Financing, 39-2a Promotional Activities, page 748). E-Business is also liable under the contract. Smith & Jones performed under the contract for 3 months before E-Business board of directors tell the accountants that it is cancelling their contract. By accepting Smith & Jones services, E- Business have adopted the contract. Thus E-Business is liable for breach of contract. Question E2-03 Winnie opened her first Xtreme Sportz outlet six years ago. To open outlets in more locations, Winnie needs capital and wants to attract investors. How can she do this? Explain your answer thoroughly. Winnie can incorporate her company and issue shares of stock to gain capital and attract investor. Many of today’s largest companies started as sole proprietorships or partnerships. They converted to corporate entities as they grew because they needed to obtain additional capital by issuing shares of stock. Incorporating a business is much simpler today than it was twenty years ago, and many states allow businesses to incorporate via the Internet (BUSINESS
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LAW - TEXT AND CASE, 14 th Edition, Chapter 39 Corporation Formation and Financing, 39-2 Corporate Formation and Powers). There are several steps taking to incorporate as followings: - Select the State of Incorporation. - Secure the Corporate Name. - Prepare the Articles of Incorporation. - File the Articles with the State. (BUSINESS LAW - TEXT AND CASE, 14 th Edition, Chapter 39 Corporation Formation and Financing, 39-2b Incorporation Procedures, page 748-751) If the share of stock is offered to the public and does not qualify for an exemption, it must be registered before it is offered to the public. Issuing corporations must file a registration statement with the SEC and must provide all investors with a prospectus. A prospectus is a disclosure document that describes the security being sold, the financial operations of the
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  • Spring '15
  • darrellford
  • Corporation

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