The Klodhoffer Corporation Has Assets Amounting to $2 Million and Needs

question 19

Essay

The Klodhoffer Corporation has assets amounting to $2 million and needs additional capital to finance expansion of its marketing operation.The board of directors decides to promote an issue of $500,000 of common stock in order to raise capital.At the time the stock is issued,Klodhoffer has 250 shareholders owning common stock.If Klodhoffer is to trade the stock over the counter,does it need to register with the SEC?

---

Definitions:

Apprenticeships

A form of on-the-job training in which junior employees learn a trade from an experienced person.

Strategic Plan

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Human Resources

The department within an organization that deals with the hiring, management, and development of employees.

Demand

The desire and ability of consumers to purchase goods and services at a given price.