legal aspects of business questions

8. Ahmed and Zoe were good friends who liked to build websites together for their friends for free. After about six months other people heard about them and Ahmed and Zoe began building websites charging money for them. Soon their business developed and they divided up the work- Ahmed designed the websites and Zoe looked after the business side of things. After about six months of this practice, and in his spare time, Ahmed designed a complicated website for a friend. When he was finished his grateful friend paid Ahmed 55,000 and Ahmed deposited the money in his own bank account. Somehow Zoe found out about the payment and told Ahmed he should pay her half of the 55.000 Is Zoe legally entitled to half of the $5,000? Why/why not? 9. Recycle Corporation is a private company with four shareholders who each own 25 common shares in the company. In June 2011 when they bought their shares, each shareholder paid $4,000 for their twenty-five shares. In March 2014 Recycle Corporation was unable to pay a $100,000 negligence claim against it. Does this mean that each shareholder will now have to write a cheque for $25,000 to help pay for the negligence claim? Why/Why not? 3 10, Ray and Dave each own 25 shares of Best Car Buys Ltd, and Ray and Dave are officers and directors of Best Car Buys Ltd. which sells second-hand cars (used cars). The company had a large inventory of cars on their lot. Ray was tired of the old car he was driving so he decided to replace it with a car from the car lot. When Dave objected, Ray replied, "Look, it's my company too. Because I own half the cars I have the legal right to take one if I want to Is Ray correct? Can Ray take a car? Does he own one-half of the cars? Why/why not? 11. Identify one way that "public" and "private" corporations are different. 12. Presume you just graduated from Saint Mary's and want to start your own marketing business. Which form of business would be most suitable for your business? Why? 13. El Paso Inc hired Goldman Sachs Corp to advise it (El Paso Ine) whether to split into two companies or to sell the company (El Paso Inc) to Kinder Morgan Corp. Goldman Sachs Corp owns 20 per cent of the shares of Kinder Morgan Corp (worth about USS4 billion) and has two seats on its board. What is the problem with this situation? How would you recommend it be solved? 14. Explain how the types of shares of a cooperative support the aims, principles, and values of cooperatives? 15. What does it mean to say that a cooperative has a separate legal personality