(Answered) : Q No.1: Smith & Co., a local Dallas CIA firm, is incorporated as a professional corporation, with three shareholders, all CIAs.

Q No.1: Smith & Co., a local Dallas CIA firm, is incorporated as a professional corporation, with three shareholders, all CIAs. The shareholders have developed a combination of marketing, software, and professional expertise which has allowed them to perform the accounting service of compiling individuals’ personal financial statements in an extremely efficient manner. The three shareholders are interested in “going national “with their accounting service, but currently lack the capital necessary to expand to other cities. They are currently considering the possibility of obtaining outside capital as a way to expand their business by offering their firm’s services to individuals