In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols incorporated Loop Corp. with only $ 1,000 of capital. Three years later, Banco Panamericano, Inc., which was run entirely by Greenblatt and owned by a Greenblatt family trust, extended a large line of credit to Loop. Loop’s subsidiaries then participated in the credit, giving $ 3 million to Loop while acquir-ing a security interest in Loop itself. Loop then opened an account with Wachovia Securities, LLC, to buy stock shares using credit provided by Wachovia. When the stock values plummeted, Loop owed Wachovia $ 1.89 million.
Answer to relevant QuestionsAlthough a limited liability company may be the best organizational form for most businesses, a significant number of firms may be better off as a corporation or some other form of organization. (See page 759.)a) The first ...Milena Weintraub and Larry Griffith were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffith owned 51 percent of the stock and Weintraub 49 percent. Weintraub managed the casino, which ...Grand Adventures Tour & Travel Publishing Corp. (GATT) provided travel services. Duane Boyd, a former GATT director, incorporated Interline Travel & Tour, Inc. At a public sale, Interline bought GATT’s assets. Interline ...The Ethical DimensionMany students have to work full time to pay for their education. Is it fair to require them to pay FICA taxes when they would not have to do so if they worked only thirty hours a week? Explain.The Legal ...McDonald’s Corp.’s Happy Meal® meal selection consists of an entrée, a small order of French fries, a small drink, and a toy. In the early 1990s, McDonald’s began to aim its Happy Meal marketing at children aged one ...
Post your question