1. Which entity of the corporation will make all of the decisions described below? I just need a short answer for this. (five points)
2. Assume the decision to declare a dividend to the three shareholders is being decided at the meeting of the board. Discuss what factors/facts the board will use to make that decision.You must state specific facts and/or factors that were used to support this decision. This cannot be something such as "we will use good business judgment", that is the standard, but what specific facts will be used to demonstrate good business judgment?This analysis must focus on how to protect the corporation from some future creditor arguing that the corporation did not act properly and the court should "pierce the corporate veil".The fact that there is a profit is only a minor factor, and almost irrelevant, in making this decision. (ten points).
3. Assume the decision to increase the CEO's salary is being decided by the board. Again, you must state the specific facts/things you considered in that decision making process. Think of this as any pay increase for any employee.