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Little Switzerland Brewing Company was incorporated on January 28. On February 18, Ellison and Oxley were made directors of the company after they purchased some stock.
Then, on September 25, Ellison and Oxley signed stock subscription agreements to purchase five thousand shares each. Under the agreement, they both issued a note that indicated that they would pay for the stock ‘‘at their discretion.'' Two years later in March, the board of directors passed a resolution canceling the stock subscription agreements of Ellison and Oxley.
The creditors of Little Switzerland brought suit against Ellison and Oxley to recover the money owed under the subscription agreements. Are Ellison and Oxley liable? Why?
When a business firm uses its inventory as collateral for a bank loan, how is the problem of storing and guarding the inventory accomplished for the bank?
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A compensation plan differ among salespeople for the following firms?
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