LEG 100 Week 8 Discussion 1 | Assignment Help | Strayer University
- strayer university / LEG 100
- 05 Sep 2020
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LEG 100 Week 8 Discussion 1 | Assignment Help | Strayer University
Week 8 Discussion 1
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.
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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.
For all discussions:
·
Post your initial response.
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Remember to respond to other posts for full credit.
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Have fun and make friends.