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In the course of operating a business, certain decisions must be made in regard to finance, expansion, product placement, and even the style of organization. The coffeehouse corporation is certainly no exception. Thorough research must be conducted to ensure that this corporation makes the decisions that will best serve it. Questions have been raised on several topics in this regard. They include liens, refinance of property, financing business expansion, reorganization of the corporation for the purpose of issuing stock, franchising, and possible bankruptcy. All of these issues individually bear weight and would financially impact the company in a multitude of ways. For that reason, each of these topics should be examined individually in a comprehensive fashion.
Liens
To protect labor and material providers from not receiving payment for materials and work provided for the repair and improvement of real property (real estate), local and state laws provide for contractors, subcontractors, and material men to make a claim against that property. This is referred to as a lien. There are several types of liens that serve a specific purpose. The style of lien that protects contractors and subcontractors is called a mechanics lien. A materialman’s lien protects a material provider from non payment. According to the text, there are two different systems that most states follow for the establishment of mechanic and materialman liens. They are referred to as the New York and Pennsylvania systems. The biggest difference is that with the New York system, the contractors and material providers can take out a lien for the specific ...