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Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Hazel and Cedric tentatively plan to request authorization for 100,000,000 shares of common stock to be sold to the general public. Hazel and Cedric have decided to establish par of $0.02 per share in order to appeal to a wide variety of potential investors. Hazel and Cedric feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a? obargain? price.
Discuss whether Hazel and Cedric are behaving in a professional manner.
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Determine Andrea's basis in the partnership interest
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