Write a response to it. About 1 page.Pat Simpsoncreated the PS corporation, called PS, Inc., naming himself as CEO and the singular director.His intent was to build mobile college classrooms, classrooms that were double-wide mobile homes and fully equipped with desks, white boards, and enough electrical outlets for instructional tools, including computers.Each classroom cost $100,000 to build, and PS planned to build 10 classrooms within its first four months of operations.Pat put $10,000 of his money into the corporation.Pat was able to sell 1,000 shares in the corporation at $10 each.The production of the mobile classrooms was slow.Pat purchased a new Mercedes with the corporate funds, paid his monthly mortgage costs, and remodeled his game room.PS was left with $12,500 in cash and no classrooms, but debts of $65,000 owed to contractors who were working on the first classroom.Discuss the rights of creditors and shareholders in this situation.
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