Reference no: EM132703848
The responsibility of the directors of a corporation is to provide a return to shareholders on their financial investment in the corporation; in other words, shareholders expect to make money on their investment. Corporations such as Facebook, Google, and Apple are financed through the sale of billions and billions of dollars in shares purchased by investors. Sometimes, however, the duty to maximize profits runs contrary to legal, but still questionable, business opportunities.
Assume that you're the director of one of the corporations listed below and have been presented with the business opportunity described in the scenario. Would you advise the corporation to accept the opportunity? Make sure to fully explain your answer, considering both the financial return expected and any related ethical concerns.
ToyCo has just been informed that its wooden trains produced in China contain lead paint and can no longer be sold in the United States. However, a distributor offers to negotiate a deal with a foreign company to sell the trains in a South American country that has no laws addressing the presence of lead paint in children's toys.
BabyHealth is seeing decreasing sales of its powdered infant formula in the United States due to more and more mothers choosing to breastfeed their babies. In an effort to offset these losses, BabyHealth chooses to sell their formula in third-world countries. However, it is widely known that the water sources in these countries is often contaminated and not boiled prior to use.
After producing 10 million versions of its new smartphone, PhoneLand discovers that due to a manufacturing oversight, some of the phones may catch fire if left in a car on a hot day. While the worst case financial impact from the phones catching fire is $10 million in damages, recalling and repairing the phones will bankrupt the company.
What is the net profit of the joint operation
: Dirk agreed to purchase such at cost. The fee of Dirk has not yet been taken up. What is the net profit of the joint operation after the fee to Dirk
|
Different motivational methods
: Analyze whether you anticipate needing different motivational methods applying your selected theories according to the ages, races, national origins,
|
Negative economic growth during two consecutive quarters
: An economic recession is typically defined as negative economic growth during two consecutive quarters.
|
Compute the payback period
: Analysis for a change project that is being considered reveals that it will cost $70,000 to establish (in year 0), Compute the payback period
|
The responsibility of directors of corporation
: The responsibility of the directors of a corporation is to provide a return to shareholders on their financial investment in the corporation;
|
Does Tco itself owe fiduciary duties to anybody
: In this story each of A, B, C and D as directors of Tco owe fiduciary duties to Tco. Does Tco itself owe fiduciary duties to anybody
|
Explain how each of these costs should be treated under AASB
: Explain how each of these costs should be treated under AASB 6 - labour costs of engineers analysing the seismic data ,costs $3,600
|
Calculate the total expected taxes that would have been paid
: Calculate the total expected taxes that would have been paid for these two fiscal years, with the 20% reduction in 6/12 - 5/13
|
Compute the annual net cost savings
: Compute the annual net cost savings promised by the automated welding machine. Would you recommend purchasing the automated welding machine
|