D3) Sydney Associates is a consulting firm owned by a few entrepreneurs. Rogo Consulting, a large consulting firm, tries to buy shares fromsome of the shareholders of Sydney to obtain control of the company without making a formal acquisition proposal with themanagement. Sydney's management invites a third party to acquire the company to prevent a hostile takeover by Rogo Consulting.This approach used by Sydney to prevent hostile takeover is an example of aO white knight tacticO counterofferO proxy fightO direct offerO poison pill defense$27 PM

Acquisitions refers to the process in which one company buys the other company and the purchasing…

Answered: Sydney Associates is a consulting firm…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Noodleoo, a struggling restaurant chain, wants to enact a franchise agreement with Stephen to sell its product through a chain-style franchise. Stephen agrees and opens the store, and 6 months later Noodleoo goes bankrupt. Which is most likely true of this situation? Stephen was not responsible for looking into the financial status of Noodleoo before making the agreement. The Franchise rule does not apply to struggling companies. If Noodleoo was not transparent with its financial data, Stephen has no recourse. If Noodleoo was not transparent with its financial data, it has broken the Franchise Rule.
The board of directors of Northshore plc decided to make a takeover bid for South Shore plc. After the decision was taken, but before it was announced the following chain of events occurred: Blue, a director of Northshore plc, buys shares in South Shore plc Blue tells his friend White about the likelihood of the takeover and White buys shares in South Shore White in turn passes on the information to his friend Green who also buys shares in South Shore Green tells his friend Grey about the information, and he too buys shares in South Shore At a dinner party Blue, without telling him about the takeover proposal, advises his brother Tom to buy shares in South Shore and Tom does so. Questions: Explain the Fiduciary duties of Directors and their relevance. Based on your knowledge of the Director’s duties and powers, explain whether the parties are guilty in each chain of events or the implications.
Zuhair, section associate in Almadar company has found the fraud done by one of his colleagues in his section. In this situation, which of the following option is appropriated initial action of Mr. Zuhair to do if he does whistleblowing? a. Discuss the issue with the family as they may be affected b. Leave the company c. Approach immediate manager and make the manager aware of the issue d. Go outside the company and discuss with the media
1. Should George have accepted the listing? George states, “I am not discriminating. The owners are the guilty party.” Can george filter potential buyers by credit score? By race? 2. Now that George has accepted the listing, could he be guilty of fair housing violations by association? Could he be innocent because he is only “following orders”?
Widget Corporation is the manufacturer of many popular children’s toys but have seen a great decrease in sales and the board of directors is worried that the business may no longer be viable. The board decides to aggressively sue other toy manufacturers that have likely been infringing on Widget’s intellectual property, enter into a joint venture with a another company to build a new factory to reduce costs, and make large and notable donations to children hospitals as part of a PR campaign to raise the corporation's image. Additionally, the board decides to start manufacturing medical equipment to make up for the projected shortfalls in budget, even though the corporation was formed to make toys. Some shareholders are upset and sue the board of directors. (a) Which of the board’s actions fall into their express power and which are their implied power? Please explain why the actions would be categorized that way. (b) Would the ultra vires doctrine play a role in the shareholders suit…

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