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Question: All the shareholder derivative lawsuits were settled, as eventually, Fantastically Innovative Surfing, Inc. was sold to a third buyer for $35 per share; the shareholders unanimously agreed to the sale of the corporation. After the sale, Paul, John, George, Chung, Denise, and Roberto went their separate ways. Three years later, Denise approached Paul with the prospect of starting up a new company that would sell clothing apparel - focusing specifically on multi-colored shorts and socks - to skaters and surfers. She had taken up art in the years since the acquisition and had become a skilled graphic artist. She proposed that she would design all the apparel and Paul would manage the business, with Paul putting up all the financial capital for the business. Denise thinks that the business should be a closely held corporation, but she is not sure that is the best choice of business organization and would like Paul's advice. Paul has come to you with the following questions. Your responses to each of the following questions should be approximately one to two paragraphs. Present your best or most persuasive arguments or suggestions. You should substantiate your responses by providing any appropriate references to the cases
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