Bertha was an enterprising young business student who financed her university education by refereeing various recreational hockey leagues around the city. Her long-term career plan upon graduating with a Bachelor of Commerce Degree was to one day operate her own marketing firm. Unfortunately, upon graduation, Bertha found herself with few employment opportunities in her field. Not being the type to sit idle, Bertha accepted a job managing one of the hockey leagues. She quickly came to realize that there was significant confusion with scheduling ice time, resulting in poor team attendance. She wondered whether a computer program could improve the process.

Not being particularly computer savvy, Bertha contacted an old roommate Beverley, who had recently graduated with a Computer Engineering Degree. In their free time, Bertha and Beverley ultimately developed a team management computer program that permitted players' contact information and team schedules and rosters to be uploaded from a web platform making information readily available to managers, coaches and players. For a fee, they took over the hockey league's scheduling using the team management computer program.

The team management computer program has been quite successful and Bertha and Beverley have since taken over the scheduling for a number of other sports leagues. Still more leagues have contacted them from across the country looking to pay for the service.

Though they do not have any formal agreement, Beverley manages the technical side of the service and Bertha manages the business side including invoicing, accounts receivable and marketing. This arrangement had been working well. But now, with the rapid growth of their business and the need for additional financing and help in managing the business, Bertha and Beverley recognize that they may have to reconsider the form of business operation that best suits their needs.

(a) Discuss the advantages and disadvantages of operating a business as a corporation as compared with operating it as a partnership. Considering those advantages and disadvantages, do you think it makes sense for Bertha and Beverley to incorporate their business? [5 points]

Now, suppose that Bertha and Beverley do decide to form a corporation to carry on the business.

(b) Advise Bertha and Beverley on the benefits of incorporating as a closely-held corporation (or private corporation) instead of a widely-held corporation (or public corporation). [2 points]

(c) If Bertha is appointed Chief Executive Officer and Beverley is appointed Chief Operating Officer of the new corporation what legal duties would they have in their new roles? [2 points]

(d) What are Bertha and Beverley's two main options for financing the corporation? What are the advantages and disadvantages of each form of financing? [3 points]

Obviously, the team management computer program is of central importance to the corporation and Bertha and Beverley want to make sure it is protected.

(e) What protection does the law afford for the team management computer program and are there any steps Bertha and Beverley must take to ensure that it is protected? [3 points]