Question #1 (5 points):

Karen wants to acquire a Molly Maid franchise, which provides in-home cleaning services.

1. In bullet point form, list the information that Molly Maid is legally required to provide her if she decides to buy the franchise(do not rely on the list in the textbook).(Note: as some of you may want to acquire a franchise, I want you all to be familiar with all of the information you will need to find out about, which is why I want you to look at the complete list at the link.)

2. If you were Karen, what three items would you find most valuable in determining whether to buy the franchise? Consider the type of franchise she is buying. State your reasoning?

Question #2 (5 points):

Dylan & Lisa have a great business idea. They want to name the company CRX Innovations.

Identify and explain the six main forms of business entities that Dylan & Lisa can use to organize CRX (do not worry about LLPs, PCs, social enterprises, or franchises). What are the advantages and disadvantages of each in each of these areas: taxation, liability, ease of formation, and transferability. Are there any other features that may make one form preferable to another?

Note the table at the end of Ch. 20.

Question #3 (5 points):

Review sections 21-5a and 21-5b.

Simon recently received a promotion to Chief Marketing Officer for Outdated Products, Inc.Simon decided to shake things up a great deal and embarked on a multi-million dollar marketing campaign to offer new product lines. With this in mind, explain:

1. the business judgment rule; and what must take place for Simon toavoid liability if he does violates the rule;
2. the two duties of the rule (make sure you explain each duty);
3. the four ways (from the textbook) that the rule is applied, and
4. how it willpositivelyimpact him in this and other business decisions as CMO (i.e. how it will have a positive influence his decision making; what will he be more likely to do?).