Case Study 10

You have recently been hired to be the COO (Chief Operating Office) of a start-up company and your primary goal is to help grow the business.  The company reported sales of $2 million last fiscal year.  The company currently does not offer trade credits because the majority of its customers use credit cards. In a bid to expand the business, you are asked to determine whether extending trade credits is a good idea.   (a)  List and explain two factors that will be important for you to make this decision?  Meaning, as the COO, what factors do you need to take into consideration if you are planning to start offering trade credit. (b)  Given what you know, are you for or against the company offering trade credits.

A few years ago, a prominent pharmaceutical company was accused by the Justice Department of meeting with its competitors and entering into an explicit agreement with these competitors to fix the price of a commonly prescribed drug. (a)   What is the difference between horizontal price fixing and vertical price fixing?  Was this pharmaceutical company accused of horizontal price fixing or of vertical price fixing?  Explain your reasoning. (b)   Would the business practice that the pharmaceutical company was accused of be considered per se illegal or would the legality of this practice be judged by the rule-of-reason criterion?  If the case had gone to trial, would “plus factors” have been considered to determine the trial’s outcome?  Explain your reasoning. (c)   Use the course material on the free-market economic system to explain why there are governmental laws against horizontal and vertical price fixing.

Write an email to Judith’s parents advising them of your decision declining their offer.

You are asked to provide advice on how to allocate the rights to a valuable monopoly. Which of the following alternatives would you recommend: (i) an auction; (ii) graft; (iii) nepotism; or (iv) regulatory discretion based on the public interest? Why?

The Gray Ferrari I t all got started when Robert L. Johnson had dinner at Mr. K’s Chinese restaurant with Michael Jordan of the Washington Wizards and David Falk, the leading sports agent. When the discussion turned to cars, Johnson mentioned his interest in getting a Ferrari. Both Falk and Jordan recommended their respective dealers but Johnson found the going tough. Only a select number of Ferraris are made annually, and the automaker limits how many are sold through U.S. dealers to about 1,000 units. In practice, anyone placing an order would have to wait over two years for delivery for a car that would cost $200,000 to $300,000 depending on the model. A New Jersey dealer had a Ferrari available, but, at $300,000, Johnson felt the price was too high. Michael Jordan’s dealer had a 360 Modena available for $160,000. Although he bought it, it was not exactly what he had wanted because the Modena is not a convertible. Franco Nuschese, the owner of Georgetown’s…

As a local wildlife manager, you have been assigned the challenging task ofdesigning a wetland preserve in a fragmented, suburban landscape (see mapbelow). The district office has allocated 10% of its budget towards this effort,which would cover the protection of a total of five out of the 10 wetlands that arein your district. The measure gained support because of an assurance that thepublic would be granted limited access to some of these areas. Several wetlandsare cut-off from each other due to housing and road development. However,money could be spent to construct one culvert (tunnel/underpass) to serve as aconnecting habitat corridor, but at the cost of protecting one wetland (i.e. youcan only protect 4/10 wetlands, not 5/10). Protected wetlands will receive a 50 mbuffer zone extending from the shoreline, within which no building permits will begranted. Water and soil quality tests will periodically be performed checking fornutrient runoff.Given these funding and design…

Suppose you have to start business dealings with a company named “XYZ” how will you document the conditions both parties agreed or disagreed on and what are the considerations for such agreement?

How would you best describe a situation where Ms. Dalal who is a seller and Ms. Asma (a buyer) both committed their time and money to expand their business and benefit from it on a long-term basis? a. Strategic partnership b. Affiliate selling relationship c. Functional relationship d. Transactional relationship

FAMAGUSTA, Inc. (a fictitious name) is a large, non-US-based multinational corporation (MNC) that has set up its new office in Manila. With the help of a few previous connections and more than a little good fortune, you land your first contract within a relatively short period of time. The job involves providing professional consultation and technical support on a joint ven- ture project with a local corporation. You will be working in the offices of the Philippine company, scoping and designing the project, managing the implementation phase, and working with their domestic personnel to get the job done. Your contract specifies an interim review after the design phase is International Business completed, but top management assures you that it is just a formality—they definitely want to work with you for the whole project. You review the facilities and résumés of both management and technical staff and every- thing looks fine. No problem, you tell yourself as you tackle…

FAMAGUSTA, Inc. (a fictitious name) is a large, non-US-based multinational corporation (MNC) that has set up its new office in Manila. With the help of a few previous connections and more than a little good fortune, you land your first contract within a relatively short period of time. The job involves providing professional consultation and technical support on a joint ven- ture project with a local corporation. You will be working in the offices of the Philippine company, scoping and designing the project, managing the implementation phase, and working with their domestic personnel to get the job done. Your contract specifies an interim review after the design phase is International Business completed, but top management assures you that it is just a formality—they definitely want to work with you for the whole project. You review the facilities and résumés of both management and technical staff and every- thing looks fine. No problem, you tell yourself as you tackle the…

FAMAGUSTA, Inc. (a fictitious name) is a large, non-US-based multinational corporation (MNC) that has set up its new office in Manila. With the help of a few previous connections and more than a little good fortune, you land your first contract within a relatively short period of time. The job involves providing professional consultation and technical support on a joint ven- ture project with a local corporation. You will be working in the offices of the Philippine company, scoping and designing the project, managing the implementation phase, and working with their domestic personnel to get the job done. Your contract specifies an interim review after the design phase is International Business completed, but top management assures you that it is just a formality—they definitely want to work with you for the whole project. You review the facilities and résumés of both management and technical staff and every- thing looks fine. No problem, you tell yourself as you tackle the…

What was the main concern of municipal and state authorities with the conversion of BC/BS plans from not-for-profit to for-profit status? How did these authorities respond to these concerns? Please provide great detail for this.

Dolla going Ultra Microfinancier launches new business geared towards wealthy   DOLLA Financial Services Limited will be launching its newest subsidiary, Ultra Financier Limited, on November 1 to be led by CEO David Henriques. The company was incorporated on August 3, according to the Companies Office of Jamaica records, but only received approval for its formation by its board of directors recently. The subsidiary will be injected with $350 million from Dolla's upsized $1.5-billion secured corporate notes (bond). Dolla is the sole shareholder with 1 million ordinary shares, with Dolla Chairman Ryan-Kwesi Reid, Dolla CEO Kadeen Mairs, Dolla Chief Financial Officer Trevene McKenzie, First Rock Private Equity (FRPE) Managing Director Christopher Yeung and Henriques as directors. "Ultra is going to be lending to high net worth (HNW) individuals. We'll lend between $1 million to $100 million per person and we take luxury assets, prime investments, and properties as collateral. A person can…

1. Harmony Inc. is a B Corp. It has received an offer from ABC Inc. which would like to purchase one of Harmony's manufacturing plants in Pennsylvania. The purchase price to be paid by ABC is higher than harmony might have anticipated, but, ABC plans to automate most of the plant, which would illuminate numerous jobs at the plant. Must harmony except the offer? Discuss. Would your answer be different if Harmony were not a B Corp? 2. Why might Anya Phillips prefer to operate her medical practice as an LLC rather than a professional corporation?

Read the Wall Street Journal article, "Boeing Board Accused in Lawsuit of Lax Oversight During 737 MAX Crisis." This lawsuit is a great example of "shareholder activism." Boeing's shareholders took action when they felt the management failed to maximize their long-term value, and the board of directors failed to fulfill its fiduciary obligation to protect the interests of the shareholders. Respond to the following questions based on theories and concepts in Chapter 9. Q3-1. What are the role and duties of the broad of directors in corporate governance? Assuming Boeing shareholders' complaints are true in this lawsuit, in what ways did Boeing's board fail to fulfill its fiduciary duties to the shareholders? Q3-2. Assuming the shareholders' complaints are true, what are some likely reasons that Boeing's board failed to effectively fulfill its duties? Q3-3. We learned in Chapter 9 the importance of making sure the management acts in the best interests of shareholders. After reading the…

Your Group has formed a tax advisory firm. One of your clients in considering investing in Barbados. The company has requested general tax advice in respect of the VAT regime in Barbados. Your Group is required to provide this advice. Additionally, the company has requested the high-level of all other applicable taxes in Barbados including all the matters that the investor needs to be aware of. Making the necessary assumption as appropriate.

On March 2, 2020, Zoe Moreau, Karen Krneta, and Veronica Visentin start a partnership to operate a personal coaching and lifestyle consulting practice for professional women. Zoe will focus on work-life balance issues, Karen on matters of style, and Veronica on health and fitness. They sign a partnership agreement to split profits in a 3:23 ratio for Zoe, Karen, and Veronica, respectively. The following are the transactions for CARLA VISTA Personal Coaching: 2020Mar. 2 The partners contribute assets to the partnership at the following agreed amounts: Z. Moreau K. Krneta V. VisentinCash S14,900 $10,500 $19,900Furniture 17,400 Equipment 19,600 14,600Total $34,500 $27,900 $34,500 They also agree that the partnership will assume responsibility for Karen's note payable of S4,900. Dec. 20 Zoe, Karen, and Veronica each withdraw $29,900 cash as a "year-end bonus." No other withdrawals were made during the year. 31 Total profit for 2020 was $109,000. 2021Jan. 5 Zoe and Veronica approve Karen's…

What does the shadow price tell us regarding the LP?

SECTION B Read the following extract and then answer the question belowTwo business entities come to you for assistance and they would like enter into a stock agreement supply. The other is a manufacturer and one is a retailer. It is their fist time to be committing to such a huge business arrangement and they both realise that it is important to do it right because as much as it looks like a great business deal, should it fail to work, it can lead to serious business losses that can even lead to liquidation and litigation. All they ask for is to be advised on the essentials of a valid business contract, and the need to explain conditions for compensating parties for breach of contract. In doing that, it is important to quote relevant authorities. Evaluate how the two enterprises need to be assisted.

Apex Hospital is in need of major renovation of its electrical system. One of Apex’s governing board members, Willy Watt, is an electrical contractor who is a partial owner of an electrical restoration company. He would like to bid on the project. May he? If he does, what must he do? What must the governing board do? Is there a problem with Mr. Watt’s fiduciary duty? Is there a problem with the governing board’s fiduciary duty? Recommend the best steps that Apex Hospital should follow.

Write a letter advising a hypothetical sole proprietor to choose another form of business ownership. By definition, a sole proprietorship is an unincorporated business owned by one person known as the sole proprietor. The majority of U.S. businesses are owned and operated as sole proprietorships. In a persuasive paper, write a letter to a hypothetical sole proprietor explaining why he or she should convert the sole proprietorship to another form of business ownership (for example, a traditional "C" corporation, an "S" corporation, or a limited liability company).

How would you best describe a situation where Ms. Dalal who is a seller and Ms. Asma (a buyer) both committed their time and money to expand their business and benefit from it on a long- term basis? a. Affiliate selling relationship O b. Transactional relationship O c. Strategic partnership O d. Functional relationship

On part D, the $600 was wrong. Is there another possible solution?

Although appealing to more refined tastes, art as acollectible has not always performed so profitably. During 2010, Deutscher-Menziessold Arkies under the Shower , a painting by renowned Australian painter BrettWhiteley, at auction for a price of $1,100,000. Unfortunately for the previous owner,he had purchased it three years earlier at a price of $1,680,000. What was his annualrate of return on this painting?

Developing Early-Offer Programs Following Disclosure The Harvard Study discovered “the great unlitigated reservoir” during the course of its research.  Explain “the great unlitigated reservoir” and how the impact they may have on the early offer process. Discusses several different approaches to the early offer process. Discuss the 3R’s Program created by COPIC Insurance Company and how it is unique.

1) summarizing whether you believe that contracts are promises 2) Analysis whether and why contracts and promises should be treated the same or differently 3) in your analysis, consider the potential economic, legal and moral consequences of your answer.