INVESTIGATION OF AN ENTERPRISE 701 



8. Are the directors stockholders and, if so, to a 

 material amount? 



Officers: 



1. Who are the officers? 



2. What are their previous records? 



3. What are their special present qualifications? 



4. Are they able to work together without friction? 



5. What compensation do they receive or are they 



to receive? 



6. Are they interested in the enterprise beyond their 



salaries? 



V. Plan of Operation. 



1. What is the general plan of operation? 



2. What special reasons, if any, led to its adoption? 



VI. Disposition of Money Asked for. 



1. Does the money from sale of stock go into the 



treasury of the company? 



2. If any does not go into the treasury, to whom does it 



go, and for what purpose? 



3. Of money going into the treasury, what proportion 



goes into active development and operation? 



4. What part goes to pay off existing debts, obligations 



and claims? 



5. What part, if any, goes to pay for promotion expenses, 



commissions, etc.? 



6. How is the development and operating money to be 



applied? 



7. Is the amount asked for sufficient to accomplish the 



desired results? 



8. Will it place the company on a self-supporting or 



profitable basis? 



VII. The Proposition. 



1. Is the general proposition a fair one? 



2. Is the price of stock or bonds reasonable? 



3. How do these prices compare with any former prices? 



4. If common stock is offered, do preferred stock, bonds 



or other profit-sharing obligations take precedence 

 and to what amount? 



