The R&D division of Pele Corp. has just developed a chemical for sterilizing the vicious Brazilian...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648d21701b45_4066648d21682b37.jpg)
Transcribed Image Text:
The R&D division of Pele Corp. has just developed a chemical for sterilizing the vicious Brazilian "killer bees" which are invading Mexico and the southern United States. The president of the company is anxious to get the chemical on the market to boost the company's profits. He believes his job is in jeopardy because of decreasing sales and profits. The company has an opportunity to sell this chemical in Central American countries, where the laws are much more relaxed than in the United States. The director of Pele's R&D division strongly recommends further testing in the laboratory for side-effects of this chemical on other insects, birds, animals, plants, and even humans. He cautions the president, "We could be sued from all sides if the chemical has tragic side-effects that we didn't even test for in the labs." The president answers, "We can't wait an additional year for your lab tests. We can avoid losses from such lawsuits by establishing a separate wholly owned corporation to shield Pele from such lawsuits. We can't lose any more than our investment in the new corporation, and we'll invest in just the patent covering this chemical. We'll reap the benefits if the chemical works and is safe, and avoid the losses from lawsuits if it's a disaster." The following week, Pele creates a new wholly owned corporation called Cabo Inc., sells the chemical patent to it for $10, and watches the spraying begin. (a) Who are the stakeholders in this situation? B I U T T Ix III E E m = = 99 OWord(s) The R&D division of Pele Corp. has just developed a chemical for sterilizing the vicious Brazilian "killer bees" which are invading Mexico and the southern United States. The president of the company is anxious to get the chemical on the market to boost the company's profits. He believes his job is in jeopardy because of decreasing sales and profits. The company has an opportunity to sell this chemical in Central American countries, where the laws are much more relaxed than in the United States. The director of Pele's R&D division strongly recommends further testing in the laboratory for side-effects of this chemical on other insects, birds, animals, plants, and even humans. He cautions the president, "We could be sued from all sides if the chemical has tragic side-effects that we didn't even test for in the labs." The president answers, "We can't wait an additional year for your lab tests. We can avoid losses from such lawsuits by establishing a separate wholly owned corporation to shield Pele from such lawsuits. We can't lose any more than our investment in the new corporation, and we'll invest in just the patent covering this chemical. We'll reap the benefits if the chemical works and is safe, and avoid the losses from lawsuits if it's a disaster." The following week, Pele creates a new wholly owned corporation called Cabo Inc., sells the chemical patent to it for $10, and watches the spraying begin. (a) Who are the stakeholders in this situation? B I U T T Ix III E E m = = 99 OWord(s)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Write a java program that will find the minimum value and print it to the console for the given array: {72, 101, 108, 108, 111, 32, 101, 118, 101, 114, 121, 111, 110, 101, 33, 32, 76, 111, 111, 107,...
-
Refer to Practice 22-1. Briefly explain why overall profitability declined in Year 2 and then went back up in Year 3.
-
What is meant by attention? What determines which stimuli an individual will attend to? How do marketers utilize this?
-
Refer to the data given for the North Company in Problem P12-2A a. Calculate the change in cash that occurred during 2019. b. Prepare a statement of cash flows using the direct method. Problem P12-2A...
-
Account balances taken from the ledger of Builders Supply Corporation on December 31, 2011, before adjustment, follow information relating to adjustments on December 31, 2011: (a) Allowance for Bad...
-
Q. The magnetization curve of the 6-kW, 120-V, separately excited generator is given in table 1 at no 1000 rpm. The machine is run at 1000 rpm. The armature and field winding resistances are 0.25 2...
-
What would you call an individual who documents all the issues, problems, and open points that were identified during a formal review? a . Office technician b . Manager c . Author d . Scribe
-
M10.4. A software installation project is being reviewed. Assume the project must be completed in 16 weeks. Crash the project as necessary (crashing one week at a time). The relevant information is...
-
Question 3. Tables. Reconstruct the sentence, table and caption shown below. To label the table, use \labelftab: Math2024tasks) after the caption line. To make the cross- reference to "Table 1" in...
-
When the gasoline pump shut off automatically, 23.6 gallons at $2.12 is the amount that will show on the cost dial? 129/10 per gallon had been delivered. What The cost dial will read $ (Round to the...
-
Q4: Show that tan 11/2 +tan12/11=tan 13/4 2 25: If A=[3], B=[ -1 31 find 2A-B 0
-
Sunn Company manufactures a single product that sells for $220 per unit and whose variable costs are $176 per unit. The company's annual fixed costs are $664,400. (1) Prepare a contribution margin...
-
Let A be an m x n matrix. A kinda-inverse of A is a n x m matrix K such that AKA = A. 1. State the definition of a kinda-inverse in terms of linear maps, without reference to matrices. 2. Show that...
-
A local politician is concerned that a program for the homeless in her city is discriminating against blacks and other minorities. The following data were taken from a random sample of black and...
-
A production function shows the relationship between a. variable inputs and fixed inputs. b. variable inputs and output. c. costs and output. d. inputs and costs. e. production and sales revenue.
-
Production in the short run a. is subject to diminishing marginal product. b. involves some fixed factors. c. can be increased by employing another unit of a variable input, as long as the marginal...
-
Diminishing marginal productivity in a frozen-pizza company means that a. hiring additional workers causes the total output of pizza to fall. b. hiring additional workers does not change the total...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App