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Oneal Wants to Buy a Computer Software Sales Business Being

question 52

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Oneal wants to buy a computer software sales business being carried on by Softstuff Inc.The corporation has two classes of shares: common shares, which vote, and are entitled to receive dividends and the remaining property of the corporation on dissolution, and preferred shares, which do not vote, but are entitled to an annual dividend of 10 percent of the issue price and to receive the amount invested in return for the preferred shares.Dividends on the preferred shares must be paid before any dividends are paid on the common shares.Also, no payment on dissolution can be made to the holders of the common shares until full payment is made to the holders of preferred shares.Clay holds all of the 10 000 issued common shares.All of the 500 issued preferred shares are held by Clay's mother.Can Oneal buy control of this business by buying all of the common shares of the corporation from Clay?

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Definitions:

Consumers

Individuals or groups who purchase goods or services for personal use and not for manufacturing or resale.

Productivity Apps

Software applications designed to improve individual or team productivity through organizing tasks, managing time, or facilitating communication.

Excise Tax

A tax levied on specific goods, services, or activities, often aimed at discouraging their use or consumption.

Producers

Individuals or organizations that create goods or provide services, playing a crucial role in supplying the market.

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