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3 May 2018
Brandy and Sherry have been colleagues for many years. Brandy invested $10,000 in their joint business, and Sherry invested $15,000. Their firm, BS, distills liquor. BS has $25,000 in debt. One day, their employee Guiness drinks all of the stock, and takes all of BSâs cash, software, and other assets, to flee to Cuba where there is no extradition treaty. Guiness was last seen boarding a plane in Canada using a one-way ticket bound for Havana. If BS were to go bankrupt as a result, what would happen to Sherry (in terms of her (1) equity and (2) debt) had the firm been structured as:
a. a corporation;
b. an LLC; or
c. a general partnership.
Brandy and Sherry have been colleagues for many years. Brandy invested $10,000 in their joint business, and Sherry invested $15,000. Their firm, BS, distills liquor. BS has $25,000 in debt. One day, their employee Guiness drinks all of the stock, and takes all of BSâs cash, software, and other assets, to flee to Cuba where there is no extradition treaty. Guiness was last seen boarding a plane in Canada using a one-way ticket bound for Havana. If BS were to go bankrupt as a result, what would happen to Sherry (in terms of her (1) equity and (2) debt) had the firm been structured as:
a. a corporation;
b. an LLC; or
c. a general partnership.
Nelly StrackeLv2
5 May 2018
