N-Pharma Case Study

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|IB Business and Management SL Ms. Sawsan’s Case Study notes |May 4 | | |2010 | |[Here are the notes that we made for the IB Business and Management Paper 1 May 4th 2010 exam |[Paper 1] | |Good Luck.] | | Business and Management May 2010 Paper 1 Case Study Business Organizations (Unit 1) 1. Define MNC: i. a large firm that…show more content…
- Advantages: o Higher EOS o Easier to get loans from the banks o More access to other sources of finance so capital is greater o Shareholders can sell to anybody and is not limited to the people who already have shares o He still enjoys limited liability o Continuity is more than in an LTD - Disadvantages: o There is a chance of lack of control o No privacy in the accounts o Chance of being taken over (acquisition) o Costly in terms of finance and time (costs to set up) o Relationship between managers and workers becomes less personal so the motivation of workers also goes down. 9. To what extent is N-Pharma considered socially and ethically responsible towards the community? - An obligation beyond that required by the law and economics for firms to pursue long term goals that are good for the society and the different stakeholders of the business (Workers, customers, suppliers, shareholders, government etc.) - Testing on animals shows that they do not care about the animals, the environment and therefore shows that they do not care for all stakeholders. They might have some positive aspects but testing on animals might have had a large impact on the stakeholders. 10. Define Takeover. It is a hostile approach where
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