Catherine has been approached by her brother Dirk, who has recently started a new corporation with their

Question:

Catherine has been approached by her brother Dirk, who has recently started a new corporation with their brother David. Thompson Brothers Inc. manufactures specialized equipment to aid in cleaning the underside of boats without removing them from the water. Dirk and David had been operating Thompson Brothers as a partnership for five years. The expansion to a corporation has required more money than they expected, and they have asked Catherine to purchase shares in their corporation. Catherine is trying to determine a fair price for the shares but is having difficulty. She has asked you to explain why she is unable to find out the current market price for Thompson Brothers Inc.

1. What might help Catherine determine a fair price?

2. What questions should you advise Catherine to ask her brothers?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...