Are poison-pill defenses ethical? If a potential acquirer buys company stock legally, thereby becoming a part owner of the company, should management be allowed to entrench itself against the wishes of this owner? Explain your answer.

Q: After dissolution caused by the illegal acts, fraud, corruption and etc. of the directors, trustees,…

A: Dissolution of a company is known as the process were the existing company is shut down by force of…

Q: The Principal-Agent Problem arises A) because managers have little incentive to work in the…

A: The principal-agent problem is the problem that arises due to a conflict of interest between the…

Q: Why can a stockholder have the right to inspect corporate books and records? Is this right absolute…

A: Stockholders:-Stockholders also known as the shareholders of the company. Stockholders includes a…

Q: Nelson is Organic Coffee Company's majority shareholder. Nelson decides to sell his Organic Coffee…

A: A majority shareholder is a person or entity, who owns more than 50% of the State in the company and…

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: Explain the statement ‘the purpose of a derivative action is to ensure that minority shareholders…

A: Introduction:  A derivative action allows a minority shareholder to bring legal action on behalf of…

Q: A shareholder will succeed on a derivative suit if a director does not violate the business judgment…

A: A business judgment rule is that the decisions made by directors are taken after considering the…

Q: a controller argues that when a company issues stock for less than current value, the value of…

A: Dilution refers to reduction in the current shareholding of the existing stockholders due to mainly…

Q: Unethical acts are generally committed by unethical people. What are some things companies can do to…

A: The companies can ensure the ethical behavior of the employees by: Creating a code of ethics,…

Q: Sometimes the government will step in when they feel the need to encourage competition in a…

A: The government will step in when they feel the need to encourage competition in a particular…

Q: Sometimes the management of a target firms fights a take over attempt even when that attempt appears…

A: A target firm is a firm that the acquiring company acquires either in the process of merger or…

Q: what are some risks that private equities encounter when they're buying a company

A: One of the better performing asset groups has been private equity (or "PE"), in part because…

Q: a. How does the offering of stock options to CEOs attempt to align CEO incentives with shareholder…

A: A. CEOs are also an employee of the organisation and if stock options are available for tbe CEO then…

Q: Which of the following is NOT normally regarded as being a barrier to hostile takeovers?   a.…

A: The barriers to hostile takeovers are Targeted share repurchases, Poison pills, Shareholder rights…

Q: What are the advantages of bringing IPO  into company?  What are the advantages and disadvantages of…

A: 1.)- Advantage of transfer IPO into company-  Blessings and downsides of IPOs An initial public…

Q: Why are stock options a controversial employee benefit, particularly for top executives?

A: Stock options – Every entity wants to motivate its employees and its executives so that more…

Q: or

A: A hostile takeover is a sort of business purchase or merger that is carried out against the…

Q: Which of the following statements is true? a. Restrictive covenants in debt agreements are an…

A: A business is an organization entirely made for earning profits or for fulfilling social needs by…

Q: What are some reasons why companies decideto go public? If going public is a good idea, whydon’t all…

A: Companies decide to go public or invite public at large to subscribe their shares due to the…

Q: A company would repurchase its own stock for all of the following reasons except:a. it wishes to…

A: (A) A company would repurchase its own stock by the reason of, (1) prevent unwanted takeover…

Q: Should companies retain dividends in the firm to protect employment and investments?

A: Retaining dividend is a part of the profit that is not given to the shareholder in fact it is held…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: Shareholder's Activism: Shareholder activism is a technique for shareholders to influence a…

Q: The separation of ownership from management creates a situation in which: a. Management may act in…

A: Option (a) is incorrect as management may act in its own interest rather than that of creditors.…

Q: Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of…

A: Management Buy-Out (MBO) involves the pooling of resources by the management team in order to…

Q: Why is the value of corporate real estate often considered “hidden” from shareholders?

A: Real estate investing: Real estate investing is defined as the acquisition of property as an…

Q: Why would a company consider going public?What are some advantages and disadvantages?

A: The name Public Company itself gives a clear idea of what a public company means or stands for. A…

Q: What is the important question of corporate finance when a finance manager advises the company’s…

A: Hi, since you have asked two different question. We will answer the first one as per the authoring…

Q: Does the inability or unwillingness to work within the constraints of a typical corporation mean…

A: Entrepreneurship is similar to sole proprietorship wherein only one person manages and handles the…

Q: director liability?

A: yes Directors square measure agents of the corporate in transactions they enter into on behalf of…

Q: Do those who are unable or unable to operate under a conventional corporation's limitations have a…

A: Here is the answer:

Q: Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: It is and to sell or buy shares of a company on the basis of information not available to the…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Advantages of the corporate form of business, over other forms, include all of the following except:…

A: A business organization is defined as an entity that is being incorporated with the aim to carry on…

Q: The Reading states that in a takeover bid, management is permitted to take defensive action provided…

A: The question is related to the effects on the company in case of a takeover Bid.   Generally, the…

Q: the advantages and disadvantages of a sole trader with a company as a choice of business structure.…

A: Entity which is structured as a sole trader is one in which a single owner is responsible for all…

Q: Why do you think investor would want more than 50% large percentage control of a company as far as…

A: Control of the company: To have control over a firm is to own a sufficient number of voting shares…

Q: how does a person cease to be a member of a company?

A: Purchasing shares in an organization implies that the purchaser is a percentage proprietor of the…

Q: The following are lessons (from previous derivative mishaps) for non-financial corporations except…

A: Answer is option 4. The following are lessons (from previous derivative mishaps) for non-financial…

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.