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cestrela7 [59]
1 year ago
11

Assume that you are on the board of directors of a company that has decided to buy 80 percent of the outstanding stock of anothe

r company within the next three or four months. The discussions have convinced you that this company is an excellent investment opportunity, so you decide to buy 10,000 worth of the company's stock for your personal portfolio. Is there an ethical problem with your decision? Would your answer be different if you planned to invest 500,000 ? Are there different ethical considerations if you don't buy the stock but recommend that your brother do so?
Business
1 answer:
kati45 [8]1 year ago
6 0

Answer and Explanation:

Insider trading means buying or selling the listed shares based on confidential information which is not yet public. This practice is done by the persons who are part of an organization like auditors, employees, directors, etc., and are aware of the confidential information. Hence, it's an unethical and illegal activity if anyone does insider trading and enjoys personal gain on such trading. Hence, if an investor planned to invest $10,000 in an organization for a personal portfolio in a given scenario, it leads to an ethical problem i.e. insider trading.

If Investor Planned to invest $500,000:

No, the answer will not be different if planned to invest $500,000 in an organization. Any investment transaction in an organization with the object to grow personally based on confidential information is deemed to be insider trading.

If the investor recommends to his brother to buy the shares

There is same ethical consideration in both the practice, whether purchasing a share for a personal portfolio or suggesting someone for purchasing the shares. Hence, if anyone suggests buying shares to another person (brother, etc.), it is also deemed unethical and illegal.

Who's called an investor?

An investor is any man or woman or other entity (which includes a company or mutual fund) who commits capital with the expectancy of receiving financial returns.

Is an investor an owner?

As a lending investor you aren't an proprietor. in case you purchase fairness in a organization you've got made an ownership funding. The go back you earn may be your proportional proportion of the enterprise's profits. The preliminary funding amount will stay tied up within the company's general fee.

Learn more about investor here:- brainly.com/question/25300925

#SPJ4

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Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased
Arlecino [84]

Answer:

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

Explanation:

Alternative 1 (lease):

less price per year $30,000 x 5 years = $150,000

Alternative 2 (purchase):

initial investment = $125,500 + $1,600 = $127,100

maintenance cost per year = $2,500 x 5 years = $12,500

<h2>                   Differential Analysis</h2>

                                              alternative 1      alternative 2     differential

                                              lease                 purchase          effect

Revenues                             $0                      $0                    $0

Costs:    

Purchase price                     $0                -$125,500         -$125,000

Freight and installation      $0                    -$1,600              -$1,600  

Repair and maintenance          $0                   -$12,500           -$12,500

(5 years)    

Lease                                    -$150,000                 $0              $150,000

(5 years)    

Income / loss                       -$150,000           -$139,600           <u>$10,400</u>

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

4 0
3 years ago
Wytes Pharmaceuticals wants to shift its list of inventory to a cloud so that its different branches can access it easily. The c
weeeeeb [17]

Answer:  A public cloud

     

Explanation: The public cloud is described as processing resources that are provided through the wider internet by third-party suppliers, allowing them access for anyone who chooses to have or buy them. These can be complimentary or on-demand priced, enabling consumers to pay for the CPU cycles, storage, or connectivity these use only per use.

The biggest difference between private and public servers is that you're not responsible for maintaining a public cloud computing solution. Your information is stored in the server farm of the supplier and the data center is owned and controlled by the provider.

7 0
3 years ago
Suppose that Ariana consumes two goods, coffee and textbooks. Both are normal goods. Suppose the price of textbooks decreases, w
marta [7]

Answer:

The correct answer here would be option D) more of textbooks would be consumed and less of coffee would be consumed.

Explanation:

In economics, substitution effect refers to a situation where there is change in demand of one good in response to the change in price of other goods. Same situation is taking place here as now the price of textbooks have decreased , Ariana will now look to consume more of textbooks and less of coffee.

4 0
3 years ago
Read 2 more answers
g On July 1, Alton Co. issued an $60,500, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends
irakobra [83]

Answer:

The interest expense is $521  

Explanation:

The amount of interest expense for the fiscal year is the interest expense of 31 days which ,in other words the interest incurred only in the month of July ,calculated thus:

interest expense=days in the month/360days*interest rate*loan amount

interest expense=31/360*10%*$60,500=$ 521  

The interest expense for the current fiscal year rounded to the nearest dollar amount is $ 521  

8 0
3 years ago
Three months ago, Central Supply stock was selling for $51.40 a share. At that time, you purchased five put options on the stock
oee [108]

Answer:

$4,350

Explanation:

Calculation to determine your net profit or loss on this investment

Net profit = (-$0.60 - $42.70 + $52) × 100 × 5

Net profit= $4,350

Therefore your net profit or loss on this investment is $4,350

7 0
2 years ago
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