A piece of land was purchased by Yacov Corporation Ltd. for the purpose of constructing a high-rise residential building. Plans were made for the development of the property, surveys were made and the land was stripped and excavated in preparation for construction. Subsequent to this work on the land, it was determined that the location was not suitable for the intended purpose, due to heavy truck traffic in the area.

As a result, the property was listed for sale with the realtor who acted in the original purchase. The sale at a substantial profit took place approximately six months from the purchase. The corporation had been newly formed when the above land was purchased. At about the same time, another piece of land was purchased and was developed into a commercial/industrial plaza which the corporation continues to own as a rental property. The principal shareholder of the corporation, Jake Yacov, owns and operates an electrical contracting business. The Articles of Incorporation of the corporation contain the following statement of objects: ...

To purchase, lease, acquire, hold, manage, develop, operate, pledge and mortgage, either absolutely as owner or by way of collateral security or otherwise, alone or jointly with others and either as principal or agent, property, real or personal, and assets generally of any and every kind of description. No mention is made of the purchase and sale of land as a business activity.

REQUIRED Write a memo for the Yacov Corp.