Scope and provisions for establishing a biomedical research

Assignment Help Business Law and Ethics
Reference no: EM13824868


Peter wants to establish a company to carry out biomedical research. The company is not intending to declare profits or pass them on to members for a number of years, as all money from trading will be used for further research. The company is proposed to be on a small scale with about 10 specialist researchers. The company once registered, is hoping to raise $6 million over a 4 year period raising $1.5million every year from a select group of investors. It is projected that the capital injection every year will meet the company's research needs.

The company, once established, hopes to receive a government research grant of $5million provided it can show that the money will only be used for research and not for profit. Albright University has also indicated that it would be prepared to give an interest free loan for research purposes to the company once it is registered but provided the company can give the University some type of security.

Peter engages a consultant to prepare a business plan at a cost of $3,000, which he intends to submit to the government and to Albright University in support of his proposal. Peter tells the consultant that the company will pay the bill after it is registered.

Advise Peter of the following:

a) What kind of company should Peter consider setting up (considering the above facts)?

b) What steps is Peter required to take when raising capital from the public? Would your answer be different if Peter were to raise $6 million from the outset as partly paid shares and simply made calls on the shares as the need for capital arose?

c) Is Peter responsible for the cost of the business plan prepared by the consultant?

d) Advise Albright University what it should do to secure the interest free loan to the company.

Additional Information:

This question belongs to Law as well as it discusses regarding the establishment of biomedical company for research. There are certain conditions based on which the company is to be established. These include profits not to be distributed among the investors, but shall be reinvested in company. The company must also raise $6 million over a four year period.

Total Word Limit: 156 Words

Reference no: EM13824868

Identify main points and sections of the research project

Identify the main points and sections of the Research Project. Identify the sub-topics and details consistent with the main points and sections. Present information in an orga

Is arnett liable to hines for the value of her piano

As a result of a fire, which occurred without any fault of Arnett or Butler, both warehouses and their contents were destroyed. Is Arnett liable to Hines for the value of he

What is the traditional meaning of the business of banking

What is the traditional meaning of the ‘business of banking'? Briefly describe some of the major "Bank" and "Non-bank" financial institutions in Australia today and the stat

How the organizational behavior influence criminal justice

How the organizational behavior influence criminal justice. The effects of social behavior within the organization. The flow of communication in criminal justice organization.

What is the name of the type of contract in this situation

What is the name of the type of contract in this situation, party A and party B agreed on a contract where by A agreed to sell B $1,00000 worth of heroin, an illegal substa

Describe the basic steps in the policy-making process

Describe the basic steps in the policy-making process. At what stage in the development of correctional policies is it most important to consider the impact of the U.S. Cons

Analyzes the relationship between various agencies

Prepare a paper of 7-9 pages that analyzes the relationship between various agencies involved in homeland security, and develop at least 3 specific strategies to improve col

Explain contract- landscaping

Explain Contract- Landscaping and I need to legally draft an agreement to be used solely by the two of us (me and my partner for our own business). If you can substantiate it


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd