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Nina, the owner of Organic Farm, a sole proprietorship, wants to obtain additional capital to operate. This can be accomplished by

Limits on a partner’s authority normally are effective only with respect to third parties who are notified of the limitation.​

A corporate director “owns” the corporation.

Dane is a director of Eco Packing Company. Dane’s rights, as a director, do not include a right to

Michel is a citizen of France. With respect to a limited liability company in the United States, Michel can

Western Rodeo LLC is a limited liability company (LLC). Like other LLCs, for federal jurisdictional purposes, Western Rodeo is most likely a citizen of

Fact Pattern 3-1 Ann starts up Bowls Bistro to serve and sell soups and salads. Ann leases space in an office building owned by Carly. The lease requires a base rent of $1,250, plus 10 percent of Bowls Bistro’s profits, each month. The term is two years. Ann hires Demi to take and fill customers’ orders at an hourly wage of $15.00, plus tips. Refer to Fact Pattern 3-1. Ann and Demi are

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.

Preferred stock is an equity security with preferences.

Preferred stock is an equity security with preferences.