MGO 403 Exam 1 Practice Questions And
Complete Answers
able to pierce the corporate veil and hold your professor accountable, as he was perpetrating
a fraud by setting up the business to order supplies with no intention of repaying - ANSWER
Suppose that your professor for this course decides to start a new business selling paper
products out of his office in Jacobs 352. He incorporates as MGO Paper Products, LLC on
March 1st, 2024. On March 2nd, he orders 10,000 reams of paper for $30,000 on account from
paper supplier Dunder Mifflin. Jim, the sales representative for Dunder Mifflin, promptly
processes the order and ships it out. On March 7th, MGO paper products takes delivery of the
paper, and immediately begins selling reams of paper for $1 (significantly cheaper than what
it was purchased for). After selling all 10,000 reams, your professor dissolves the business,
pays out all of the earnings to himself (the one shareholder of the organization), and tells
Dunder Mifflin that he is unable to pay the $30,000 that is owed to the company. He also tells
Jim that since he was established as an LLC, Dunder Mifflin cannot try to recover the money.
In this case, Dunder Mifflin would likely be:
romantic and external control - ANSWER In class we addressed two perspectives of leadership
as well as their implications. These two perspectives are
the shareholders, board of directors, and management. - ANSWER The three participants in
corporate governance are
The underwriter of the financial institution involved in the IPO - ANSWER When a company
decides to engage in an initial public offering (IPO) via a bought deal, who determines the
offering price of the stock?
Complete Answers
able to pierce the corporate veil and hold your professor accountable, as he was perpetrating
a fraud by setting up the business to order supplies with no intention of repaying - ANSWER
Suppose that your professor for this course decides to start a new business selling paper
products out of his office in Jacobs 352. He incorporates as MGO Paper Products, LLC on
March 1st, 2024. On March 2nd, he orders 10,000 reams of paper for $30,000 on account from
paper supplier Dunder Mifflin. Jim, the sales representative for Dunder Mifflin, promptly
processes the order and ships it out. On March 7th, MGO paper products takes delivery of the
paper, and immediately begins selling reams of paper for $1 (significantly cheaper than what
it was purchased for). After selling all 10,000 reams, your professor dissolves the business,
pays out all of the earnings to himself (the one shareholder of the organization), and tells
Dunder Mifflin that he is unable to pay the $30,000 that is owed to the company. He also tells
Jim that since he was established as an LLC, Dunder Mifflin cannot try to recover the money.
In this case, Dunder Mifflin would likely be:
romantic and external control - ANSWER In class we addressed two perspectives of leadership
as well as their implications. These two perspectives are
the shareholders, board of directors, and management. - ANSWER The three participants in
corporate governance are
The underwriter of the financial institution involved in the IPO - ANSWER When a company
decides to engage in an initial public offering (IPO) via a bought deal, who determines the
offering price of the stock?
