Please answer the following question based on the image below. Cookie Monster is contemplating making a capital contribution into his company, and then having the company (Cookie Management Company) borrow money from the bank. What management rights would the bank have in Cookie Management Company?

1. Bank would have the right to vote on whether Cookie Management Company can borrow additional money.
2. Bank would have a right to a portion of the profits of Cookie Mangement Company.
3. Bank would have no rights in Cookie Management Company with the exception of the right to receive payments on the loan that it made to Cookie Management Company.
4. Bank would have the right to seize the shares of Cookie Management Company that are owned by Cookie Monster.

Client Profile BANK Bank Loan Cookie Management Company (France) Capital Contribution