Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co. The firm borrowed money from a bank and gave the bank the bank the firm’s note for the loan. In addition, each partner guaranteed the note individually. The firm became insolvent, and a receiver was appointed. The bank claims that it has a right to file its claim as a firm debt and that it has a right to participate in the distribution of the assets of the individual partners before partnership creditors receive any payment from such assets. a. Explain the principle involved in this case. b. Is the bank correct? Why or why not?

What are some weaknesses of the five modes of entry?

Distinguish between a tender offer and a compulsory share exchange.

Which of the following statements regarding business ethics is NOT correct? According to Bagley in The Ethical Leader's Decision Tree, directors' obligation is to manage the corporation "for the best interests of the corporation", which might not be “maximizing shareholder value" all the time. According to Bagley in The Ethical Leader's Decision Tree, when there is no established ethics policy, directors can turn to their company values statement for guidance about what constitutes ethical business behavior. According to Epley and Kumar in How to Design an Ethical Organization, a better way to manage ethics is to design workplace context that encourage good behavior. Keeping prosocial values top of mind for employees as they make decisions will reduce the likelihood of transgressions. According to Epley and Kumar in How to Design an Ethical Organization, the "tone at the top" is a much more significant driver of employees' behavior than "tone in the middle".