Writing Assignment No. ONE

I posted the writing assignment on D2L.  It is also attached below.  It must be turned in by Wednesday evening at 6:30 pm.  Do not put your name on it, only your student number.  Follow the instructions.   Do not email it to me.  You can give it to someone at the school who can put it in my box if you are not coming to class.

I have received several emails from students primarily requesting that I help answer the question.  That will not happen.

I cannot stress enough that you should focus on the question that is asked and use the facts that you are given to answer the question, as best you can.   I am not interested in how well you tell me about the rules you remember.   I am not impressed by how many issues you can “find.”  I am interested is seeing whether you can think like a lawyer.

The Writing Assignment is here (I think).  corps-writing-assignment-2016-one.

Questions About the Writing Assignment

  1.  The corporation is a corporation.  It issued stock.  It has a board of directors.  It has a President.  It is not a partnership!
  2. You can answer the questions very nicely without quoting any cases or treatises.  If a case that we reviewed is on point, it would be useful to mention that.  This is not a research project.  This is an answer the question project.

Prior Exams – Question from a Student

When will we be going over past exams in class so that we can have an idea on how to format for the exam and zone in on the issues.

Answer:  All of my past exams are on D2L along with my analysis for each.  I also have past bar exams and analysis for each.  It’s a work in progress as I’m still getting to all of the bar exam questions.  I will begin going over past exams in class in another couple of weeks.

Assignment – Public Company Comments

I should have added in the last post about the assignment answers I have been getting – a basic rule of accounting.   The total of liabilities plus stockholders equity is always exactly equal to the assets.  If the company’s assets equals $1 million for example, the liabilities plus stockholders equity will also equal $1 million.    If you own a car worth $30,000 and you owe $10,000 on it, your equity is $20,000.

The relationship between debt and equity is a telltale sign of the financial health of the company.  The more the liabilities exceed the equity, the shakier the financial health is.  A company with $1 million in assets and $950,000 in debts is “highly leveraged.”  Its profits are going to go to pay the liabilities instead of to shareholders.  To the extent the liabilities are accruing interest, the profit is going to pay the interest rather than dividends.