1. Leslie is interested in starting a new business. Although Leslie has developed her business plan and is ready to implement her ideas, she lacks the necessary finances to begin her new business. Along with a lack of finances, Leslie worries about the potential liability involved with starting a new business. Leslie would hate to lose all that she has personally accumulated to date in the event of a successful lawsuit against her. She is considering a sole proprietorship, a partnership, or a corporation as the organizing structure of her new venture. Which type of business would best serve Leslie's needs at this given time? In your discussion, include the pros and cons of each and explain your reason for choosing the organization structure that you chose.
2. James has been very successful in the livestock business over a number of years. James has decided to establish a cattle program as an investment tool. He will purchase cattle with investors' money and then provide medical care, feed, and transportation on a service contract basis. The profits then will be divided proportionately among the investors. An investment company, Money Ventures, Inc., is interested in the entire offering of Jame's cattle program. James is unsure as to whether the securities acts apply to him. In addition, he wonders whether his venture, as structured, is exempt if the activity is within the securities acts. Should James be concerned? Explain each of the securities acts, thoroughly in your discussion of whether James should be concerned. (Your answer to this question should prove that you understand the securities act)
3. Chase started a new job, which he considers to be his dream job. He is a little worried because he feels that although he has a contract for a year, he feels that he may be able to still lose his job. As if this was not enough to worry about, he walked into a meeting that he should not have overheard. He heard the executives in this meeting talking about how they were going to shred documents that show the company is losing money. He immediately closed the door, but he thinks that everyone saw them. He thinks that he should report this information to the Securities Exchange Commission; however, he is concerned that the company could retaliate against him.
Quite naturally during his first week of work, he had to sign up for benefits with the Human Resources Department. The company offered its own Pension Plan for retirement. Well, Chase is worried that the company can one day take his contributions into his pension plan and run, so he is very hesitant to sign up and he will take his 30 days to think about it. In addition to all of this, he finds out that his wife is 3 months pregnant. Once, his wife has the baby she will only be able to stay at home with the baby for 6 weeks, but they want the baby to stay home for 12 weeks. Other than these couple of issues that Chase has faced, he has determined that the company is abiding by all employee regulation laws as it relates to his employment
1. Using the laws given in the text, what would you tell Chase about his concern over losing his job even though he has a contract?
2. Using the laws given in the text, what would you tell Chase whether he should tell the SEC or not? Also, what would you tell him to ease his worry over retaliation from the company?
3. Using the laws in the text, what advice would you offer Chase about whether to sign up for the Pension Plan?
4. Using the laws in the text, what can Chase do to help out his wife who cannot stay home with the baby long?
5. What other laws that have not been mentioned is Chase saying the company is abiding by?