Oneal Wants to Buy a Computer Software Sales Business Being

question 74

Essay

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:

Socioeconomic Classes

Categories of individuals based on their economic status, often determined by factors such as income, wealth, education, and occupation.

Identical Twins

Twins who develop from a single fertilized egg that splits, resulting in two individuals with identical genetic make-up.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, genetically similar as siblings but not identical.

Prenatal Influences

Factors occurring before birth that can affect the development, health, and behavior of the individual, including genetic and environmental influences.