Case 1:
Tim sets up “Barbie” shop under the form of a sole proprietorship.
1. May “Barbie” shop hire some sales assistants?
2. Who will responsible for the business decisions of “Barbie” shop?
3. To assume, “Barbie” shop owes its supplier $30,000 that is in excess of its
fund, can the supplier require Tim to pay the debt?
Case 2: A partnership namely “Joe & partners” has one general partner (Joe) and three
limited partners.
1. Who takes part in management of the partnership?
2. If the partnership has a debt which it cannot pay by its own property, who will
pay the debt?
Question 3: What is the similarity and difference between general partnerships and
limited partnerships?
Question 4: Who is a stockholder of a corporation
Question 5: Charlie has only one stock certificate. Does it mean that Charlie has only
one share of stock?
Case 6: Jim owns 10,000 shares of preferred stock.
- May Jim have the right to vote?
- May Jim have the right to vote according to the law of Vietnam?
Case 7: James holds no certificate of stock; however, his name is printed in Knight
Corporation’s record book as a stockholder who holds 10 shares of common stock. Is
it sufficient to prove that James is a stockholder?
Question 8: According to the law of Vietnam, which of the shareholders have the right
to vote?
Question 9: Does a board of management have right to distribute the dividends to
shareholders according to the law of Vietnam?
Case 10: Mine Corporation has the capital stock of $100,000.
a. May Mine’s board of directors distribute dividend to Mine’s stockholders out
of the capital stock?
b. Mine Corporation invests $10,000 to purchase shares of stock issued by Bank
Corporation (the invested stock) and invests $99,000 to purchase a coal mine.
The invested stock increased up to $50,000. Mine Corporation earns $20,000 of
net profit from the coal mine. Which earnings may Mine’s board of director
decide to pay out of to distribute the dividends to Mine’s stockholders?
Question 12: May a stockholder who cannot attend the stockholders’ meeting
authorize another person to represent him to attend and vote at the stockholders’
meeting?
Case 13: Joseph is a majority shareholder of Best Food Corporation.
a. Can Joseph take part in management of Best Food as a majority shareholder?
b. Best Food’s debtor fails to pay the debt as promised. Who can sue debtor to
collect the debt?
c. Assume at the end of fiscal year, Best Food gets no profit. Can Joseph be
paid dividend?
Question 14: A director must own at least one share in a corporation of which he is a
director. True or False? Why?
Question 15: May the board of directors remove a director according to U.S. law?
Case 16: MNM Corporation’s board of directors elects James as a president. James
appoints Laura as a human resource assistant. Must the letter of appointment be
approved by the board of directors?
Question 17: May a director authorize another person to attend and vote on behalf of
him/her at the meeting of the board of directors?
Case 18: There is an announcement publicized by a famous credit agency: “Jet
Corporation has recently downgraded from Baa to C. It means that Jet Corporation’s
payment default is highly possible.” Two thirds of the board of directors of Well
Corporation votes for investment in the bonds issued by Jet Corporation. The
remaining directors dissent the investment. The directors’ assent and dissent are
recorded. The investment is still approved by the rule of majority which causes the
loss of $10,000 to Well Corporation. Because, Jet Corporation is insolvent and
bankrupt. Who is held personal liability for the loss of Well Corporation?
Case 19: Joe is a director of Tailor Corp. The owner of a patent having offered to sell
it to Tailor, also offers to sell it to Joe.
a. May Joe buy the patent for his own business while Tailor is still considering
the offer?
b. If Joe knows that Tailor is in financial trouble so it cannot meet the owner’s
proposed price, may he buy the patent?
c. What is the legal result if Joe buys the patent for his own business while Tailor
is still considering the offer?