you must writea three page paper discussing the legal issues and likely outcomesfor all of the scenarios provided below.
1) Paul Peters is aninventor. He has various creative inventions that he thinks willmake him a lot of money if he markets them right. His best friendRonald Robinson has a Bachelor degree in Marketing, an MBA, and hasinnovative ways of marketing products. Paul does not have a lot ofmoney, but his cousin Sara Sanders is millionaire after hitting itbig with the house boom and knowing when to stop investing. Paulthinks that with his inventions, Ronald’s business skills, andSara’s money, they can make it big. Paul decides to create abusiness with these individuals and asks you for help with thedetails. You must give him advice on what is the best business forhim to form? Why? Make sure to include a description of thebusiness model that would be best for him, as well as a descriptionof the other business models and why they would not be as good asthe one you advised him. Also make sure to cover all of the stepsthat he must follow in order to form that particular type ofbusiness.
2) Paul, Ronald, andSara have already formed their business as you have recommended andare rapidly prospering. Paul is upset because other individualshave been attempting to follow in his footsteps and are creatingsimilar businesses. Paul has decided to lose some money in theprocess, but to sell his items so cheap, that no one can competewith him. He hopes that that way he could veer off his competitorsand then substantially increase the prices so that he can make upfor the loss profits. Can Paul do this? Why or why not?
3) After ten years,Paul decides that he does not want to continue the business. Thecompany has incurred a substantial amount of debt, it owes themanufacturer of the products, a company called WeDoItAll, over$20,000.00; it owes the bank (Inventors Bank) about $28,000.00, andthe company owes Sara, who has made the company many loans to stayafloat a total of $18,000.00.Paul thinks that bankruptcy might bethe best solution. As an advisor to Paul, you must (1) explain tohim how to dissolve the business (what steps he must take); and (2)give him advice as to whether bankruptcy is a good solution for hiscompany.
