Question 1: A corporation decided to repurchase stock of a shareholder who recently died. The corporation was in existence for three years and had lost $50,000 during this period. The original shareholders had invested $25,000 in the business, of which the deceased had invested $5,000. How much may the corporation pay for the stock of the deceased? Explain.

Question 2: All stockholders were present at the annual stockholders meeting of a corporation whose bylaws required only a majority of shareholders to constitute a quorum. During the meeting, two stockholders who owned a majority of the stock withdrew from the meeting while it was in progress. Following their withdrawal, the remaining stockholders elected five members to the board of directors. Should the election of the directors be invalidated? Why or why not?

Question 3: Kamsui, Hotaka, and Moriko desire to form a limited liability company. Kamsui possesses years of experiencing managing a business. Hotaka is a brilliant software engineer. Moriko is wealthy. Would you advise that the three owners adopt a member-managed or a manager-managed limited liability company? Why?

Question 4: Greta and Hansel form a limited partnership under which Greta is the general partner and Hansel is the limited partner. The business purchases an apartment complex. Greta manages the business, but one day learns that Hansel has purchased twelve new water heaters for the complex. What advice would you give Greta and Hansel?