Explain whether or not employees should take the action suggested by their boss.

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Bedron Company is a closely held investment service group that has been quite successful overthe past 5 years, consistently providing most members of the top management group with 50%bonuses. In addition, both the chief financial officer and the chief executive officer have received100% bonuses. Bedron expects this trend to continue.Recently, Bedron’s top management group, which holds 35% of the outstanding shares ofcommon stock, has learned that a major corporation is interested in acquiring Bedron. The other corporation’s initial offer is attractive and is several dollars per share higher than Bedron’scurrent share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at thecurrent price in anticipation of the takeover offer.Required:CONCEPTUAL CONNECTION Do you think that the employees should take the action suggested by their boss? Suppose the action is prohibited by Bedron’s…

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Chapter 1, Problem 18E

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Explain whether or not employees should take the action suggested by their boss.

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Bedron Company is a closely held investment service group that has been quite successful overthe past 5 years, consistently providing most members of the top management group with 50%bonuses. In addition, both the chief financial officer and the chief executive officer have received100% bonuses. Bedron expects this trend to continue.Recently, Bedron’s top management group, which holds 35% of the outstanding shares ofcommon stock, has learned that a major corporation is interested in acquiring Bedron. The other corporation’s initial offer is attractive and is several dollars per share higher than Bedron’scurrent share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at thecurrent price in anticipation of the takeover offer.Required:CONCEPTUAL CONNECTION Do you think that the employees should take the action suggested by their boss? Suppose the action is prohibited by Bedron’s…

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