a) Kelvin, Lily, Melody, Nathan and Otto decided to form a business enterprise which trades 3D...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a) Kelvin, Lily, Melody, Nathan and Otto decided to form a business enterprise which trades 3D printers. They entered into an oral agreement under which Kelvin will contribute HKS5,000,000 cash on the understanding that at the end of four years he will be repaid at least HK$700,000. Lily will allow her motor van to be used for the delivery of the printers sold to customers. Nathan will contribute electronic products and printers manufactured by his father's factory as capital in the business enterprise and Nathan will provide after-sale services to repair sold printers to customers. Melody will use her financial skill and expertise in business management and administration. Otto will responsible for finding customers for the business. Explain whether Kelvin, Lily, Melody, Nathan and Otto formed a valid partnership. b) Elon, Yuki and Carson are the directors of Ally Hardware Co. Ltd. Elon is the managing director. Carson is husband of Yuki. Yuki has been asked by Elon to buy 500 printers for Ally Hardware Co. Ltd. Unknown to the other directors, Yuki runs her own company that sells printers and she gave the Ally Hardware Co. Ltd. expensive contract to it. Yuki did not mention this to the other directors of Ally Hardware Co. Ltd. and she earned secret personal profit HK$200,000. Carson is busy with his job as an airline pilot and has failed to attend any directors' meetings for the last two years. He told Elon and Yuki that he is happy to agree with whatever decisions they make with regard to the business. Three months ago, Carson forgot to renew the insurance over the company's premises. Last week, there was a fire which destroyed the company premises and the company suffered HK$300,000 property loss without insurance compensation cover. Carson received huge directors' fees (HK$100,000) cach month. Explain whether Yuki and Carson breached the director's duties. a) Kelvin, Lily, Melody, Nathan and Otto decided to form a business enterprise which trades 3D printers. They entered into an oral agreement under which Kelvin will contribute HKS5,000,000 cash on the understanding that at the end of four years he will be repaid at least HK$700,000. Lily will allow her motor van to be used for the delivery of the printers sold to customers. Nathan will contribute electronic products and printers manufactured by his father's factory as capital in the business enterprise and Nathan will provide after-sale services to repair sold printers to customers. Melody will use her financial skill and expertise in business management and administration. Otto will responsible for finding customers for the business. Explain whether Kelvin, Lily, Melody, Nathan and Otto formed a valid partnership. b) Elon, Yuki and Carson are the directors of Ally Hardware Co. Ltd. Elon is the managing director. Carson is husband of Yuki. Yuki has been asked by Elon to buy 500 printers for Ally Hardware Co. Ltd. Unknown to the other directors, Yuki runs her own company that sells printers and she gave the Ally Hardware Co. Ltd. expensive contract to it. Yuki did not mention this to the other directors of Ally Hardware Co. Ltd. and she earned secret personal profit HK$200,000. Carson is busy with his job as an airline pilot and has failed to attend any directors' meetings for the last two years. He told Elon and Yuki that he is happy to agree with whatever decisions they make with regard to the business. Three months ago, Carson forgot to renew the insurance over the company's premises. Last week, there was a fire which destroyed the company premises and the company suffered HK$300,000 property loss without insurance compensation cover. Carson received huge directors' fees (HK$100,000) cach month. Explain whether Yuki and Carson breached the director's duties.
Expert Answer:
Answer rating: 100% (QA)
a Yes they have formed a valid partnership A partnership settlement may be oral or in writing It isn... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these accounting questions
-
Elon, Yuki and Carson are the directors of Ally Hardware Co. Ltd. Elon is the managing director. Carson is husband of Yuki. Yuki has been asked by Elon to buy 500 printers for Ally Hardware Co. Ltd....
-
On March 1, Sharon Fitzgerald entered into an oral lease of a house owned by Parkin. The lease was on a month-to-month basis, and the rent was set at $290 per month. Parkin also agreed to make...
-
The plaintiffs entered into an oral agreement with the New York University Medical Center for an in vitro fertilization procedure that would not result in an autistic child. They subsequently signed...
-
Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance $ 3,900 Mortgage interest 10,700 Property taxes 3,000 Repairs...
-
The following ledger accounts are for Afocentric Service Company: a. Supplies b. Utilities Expense c. Accounts Receivable d. D. Minimus, Capital e. Land f. Prepaid Rent g. Accounts Payable h....
-
What are the benefits for the signatories?
-
Under what circumstances can the return on sales be used to assess the profitability of a company? Can this ratio be used to compare the profitability of companies from different industries? Explain.
-
Jordan Enterprises has estimated the contribution margin (P MC)/P for its Air Express model of basketball shoes to be 40 percent. Based on market research and past experience, Jordan estimates the...
-
6 . A medical facility does MRIs for sports injuries. Occasionally, a test yields inconclusive results and must be repeated. Using the following sample data and n = 2 0 0 , determine the upper and...
-
As an investment advisor for MREAF (Momentum Real Estate Advisory Fund), you are about to make a presentation to the portfolio manager of the ET&T pension fund. You would like to show what would have...
-
Thomas is the owner of a landscaping company that caters to a very wealthy clientele. His com to differentiate itself from the other high-end landscapers in the area, but because he has hired but...
-
Examine the relationship between economic inequality and social justice. How do different theoretical frameworks explain the persistence of income and wealth disparities across generations ?
-
Explore the applications of advanced water quality modeling tools, such as multi-species reactive transport models and coupled hydrodynamic-biogeochemical models, in assessing the fate and transport...
-
Pharoah Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2025 and 2026. 2025 2026 Projected benefit obligation,...
-
Microeconomics students must present a real-world company or other entity to analyze from a Microeconomics perspective. Grading Rubric : in three equal parts (too short Presentations will have...
-
Abner Corporation's bonds mature in 37 years and pay 7 percent interest annually. If you purchase the bonds for $930, what is your yield to maturity?
-
Financial matters centers around the way of behaving and cooperations of monetary specialists and how economies work. Microeconomics is a field which examines what's seen as fundamental components in...
-
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
-
On Tuesday, June 11, Siniscalchi issued a $200 check on the drawee, Valley Bank. On Saturday morning, June 15, the check was cashed. This transaction, as well as others taking place on that Saturday...
-
Officer Cyril Rombach of the Burbank Police Department, an experienced and well-trained narcotics officer, applied for a warrant to search several residences and automobiles for cocaine,...
-
Mitchell, Nelson, Olsen, and Parker, experts in manufacturing baubles, each owned fifteen out of one hundred authorized shares of Baubles, Inc., a corporation of State X, which does not permit...
-
Product Cost Report-Weighted Average Method Bath Manufacturing Company uses the weighted average method for process costing. Bath produces processed food products that pass through three sequential...
-
Gaston Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department,...
-
Commodore Company processes a food seasoning powder through its Compounding and Packaging departments. In the Compounding Department, direct materials are added at the beginning of the process, and...
Study smarter with the SolutionInn App