Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ade is 30 years old and a recent Ph.D. graduate. Ade just inherited some money, and has $160,000 left after paying off debt incurred to

Ade is 30 years old and a recent Ph.D. graduate. Ade just inherited some money, and has $160,000 left after paying off debt incurred to go to school. Ade has developed a new network security device, and Ade has a working prototype of it. The device would be of interest to any business that needs exceptionally good security, but it will be expensive to bring to market. Ade also has three more inventions relating to network-security in various stages of the development cycle. Ade lives alone in a very inexpensive apartment. Ade has a part-time job working as a lab supervisor in a local college. Ade would like to quit that job.

Billie is Ade's friend. They have been friends since they were both undergraduates, and Billie would like to go into business with Ade. Billie completed an MBA degree and is working for an app development business. The job provides a stable income for Billie (approximately $150,000 per year) and Billie's familly (a spouse and a young child from the spouse's first marriage). Billie is seven years into a 25 year mortgage on a house that is now worth $700,000, and Billie has approximately $10,000 in savings and $3,000 in consumer debt. Billie has been helping Ade with business plans on nights and weekends.

Chidi is 60 years old, semi-retired. Chidi made approximately $2,000,000 during the technology boom in the 1990s, and has grown that money considerably over the years. Chidi has investments, properties and savings totaling more than $500 million. As well, Chidi is an investor in and Board Member for the app development business where Billie is a manager. After meeting with Ade and Billie, Chidi is prepared to invest $3,000,000 for 40% of the business.

What business structure do you recommend? Explain your answer with reference to the facts provided

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Criminal Law And Its Processes Cases And Materials

Authors: Sanford H. Kadish, Stephen Schulhofer, Rachel E. Barkow

11th Edition

1543810772, 978-1543810776

More Books

Students also viewed these Law questions

Question

A greater tendency to create winwin situations.

Answered: 1 week ago

Question

Improving creative problem-solving ability.

Answered: 1 week ago