Elise and Kim Are Trying to Decide How to Set

question 29

Essay

Elise and Kim are trying to decide how to set up the internal management structure of the corporation they have just incorporated to carry on their engineering consulting business.They each hold 35 percent of the shares,with the remaining 30 percent being held by five employees.Elise will run the business.She will be responsible for all aspects of the management of the office.Kim will be a passive investor,but is nevertheless interested in being kept informed regarding what is going on in the business.Kim and Elise decide that they will both be directors and then delegate all management powers to Elise,subject only to an obligation to report to the board every two months as to what is happening.Will this structure work? Support your answer.

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Definitions:

North and South America

Denotes the two continents making up the Americas, with North America including countries like the United States and Canada, and South America comprising countries like Brazil and Argentina.

Foreign Countries

Nations outside of one's own, often referenced in the context of international relations, trade, or travel.

Pike's Expedition

An early 19th-century expedition led by U.S. Army officer Zebulon Pike, aiming to explore the southern portion of the Louisiana Territory.

Louisiana Territory

A large area of land in the United States that was purchased from France in 1803, doubling the size of the country.