Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The president of Biltmore Farms, LLC cooks up a scheme to raise money for the business. He proposes Biltmore Farms sell cows from its herd

The president of Biltmore Farms, LLC cooks up a scheme to raise money for the business. He proposes Biltmore Farms sell cows from its herd of 800 Jersey dairy cows to investors for $1,000 each. Biltmore Farms will retain possession of the cows. Biltmore Farms employees will milk the cows and process the milk into a variety of dairy products. Each investor will receive the right to a small percentage of the profits from the dairy farm operations. They will have a right to have their cow pointed out to them on official sanctioned tours, but otherwise will have no rights in the cow (nor any related obligations). Is this a security under the '33 Act? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Law questions