1) Assume that you are Mr. Hegarty, the CEO of Mebel-Doran. What will you do now? What avenues are open to you? Is Mebel-Doran ethically responsible for anything in this transaction? Should they be legally responsible? Since no one got caught, is it reasonable to go about "business as usual?"

Explain your position in a clear and well-argued essay.

2) Philbert is considering starting a business along with his wife, who has a relatively large income from her professional job. They expect to be the sole owners and do not expect to require additional capital except for a bank loan initially. The business, which will be in the business of toxic waste disposal, will naturally be quite risky and they are concerned with lawsuits against their business, which may cause them to lose the considerable personal wealth they have developed. They do not expect the business to be profitable initially, but the prospects for growth and positive future income look good; and they would like to minimize their tax bill(s), both now and in the future. Which of the legals form of business organization would probably best suit their needs? Explain your answer in a clear and well-argued essay.