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JOAN GOES NATIONAL AND BEYOND
Joan comes to you five years later after choosing to start her own business. It has been successful and she now wants to go national. However, she needs capital. She has two people who are willing to invest in her corporation if she chooses to go that route. She can get bank loans to grow the business, but is worried about the personal liability she might incur. What would you advise her to do? If you tell her to incorporate, how would you suggest that she structure the financing of the corporation? Explain.
CORPORATE DIRECTORS
Ever since the Ford Pinto case, Enron and now Murdoch there is an increasing number of laws passed that make corporations criminally responsible for their actions. The Supreme Court recently decided that because corporations are considered "a person" in the law they cannot be limited in their campaign contributions. In light of this recent decision, should corporations, and the corporate directors, be responsible for their criminal actions? Are corporations persons? Can you hold the corporate person responsible as well as the directors? If yes how?
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