After having been a partner in a partnership for five years, you decided to leave and form a corporation. Having completed the necessary organization steps and formed a board of directors, you sold stock to raise the necessary capital. You have retained control of 51 percent of the stock. One day a former partner (who owns 20 percent of the stock in your corporation) sends you a bill for $ 10,000 for an advertising campaign. He hired the public relations company to increase the visibility of the corporation in which he is a stockholder. Are you going to pay the $ 10,000 bill your former partner incurred? Why or why not?

  • CreatedOctober 21, 2014
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