In: Operations Management
17. The decision to incorporate a corporation in Delaware is based on which of the following?
A. no state taxation of out of state corporations.
B. privacy considerations.
C. all the alternatives.
18. Emily, who works in a nursing home, collects rare 20th century specialty jewelry. One of the nursing home residents has a jewelry box full of such jewelry. Emily googles the jewelry and discovers a site that lists equivalent jewelry as being worth $12,000. Emily offers the resident $12,000 for the jewelry. The resident accepts the offer. Which of the following is true?
A. The contract is enforceable assuming Emily takes good care of the resident.
B. The contract may be voidable.
C. The contract between Emily and the resident is enforceable because there is bargained for consideration.
17. The decision to incorporate a corporation in Delaware is based on which of the following?
Answer: C. all the alternatives.
Reason:
A. no state taxation of out of state corporations
Under Delaware Corporation, it doesn't matter if a company's physical location is in the state or not; as a Delaware corporation, no in-state purchases are subject to tax. Additionally, there is no state corporate income tax on goods and services provided by Delaware corporations operating outside of Delaware. So, it is a condition.
B. privacy considerations.
The privacy afforded to owners of Delaware corporations and LLCs is also incomparable. The state of Delaware allows you to file your company without listing the names of the owners, which protects the owners' identities, personal information and privacy in general. Hence, it is also a condition to be incorporated as a Delaware Corporation.
18. Emily, who works in a nursing home, collects rare 20th century specialty jewelry. One of the nursing home residents has a jewelry box full of such jewelry. Emily googles the jewelry and discovers.
Answer: C. The contract between Emily and the resident is enforceable because there is bargained for consideration
Reason:
C. The contract between Emily and the resident is enforceable because there is bargained for consideration, an agreement is enforceable when it is valid. And the conditions for a contract to be valid are should have offer, acceptance, consideration and legality. And since there is bargained for consideration, hence this is the answer.
A. The contract is enforceable assuming Emily takes good care of the resident. Taking good care of resident is not a condition for a contract to be enforceable. So, not an option.
B. The contract may be voidable. The contract is not voidable since it has all the elements of a valid contract. Hence, not the answer.