Beta Corporation is a Delaware corporation whose common stock is traded on the New York Stock Exchange. Arms-R-Us, a subsidiary of Beta, manufactures weapons and artillery shells. Arms-R-Us is profitable, but it is relatively small, so it accounts for a tiny proportion of Beta’s revenues, profits, and assets. Recent news stories have reported that some of the arms manufactured by Arms-R-Us have found their way into the hands of Sudanese guerillas who are fighting a violent, bloody civil war. Matak Maysaa owns about $5,000 worth of Beta’s common stock, less than 1/100 of 1% of the total outstanding. Matak is of Sudanese ancestry and is upset about the Arms-R-Us stories. He has written a letter to Beta’s CEO strongly urging him to get out of the weapons business, but the CEO has not responded. Matak would like to communicate with other Beta shareholders and urge them to do everything possible to get Beta out of the arms business. Discuss the different ways Matak may communicate his message to the shareholders and urge them to act, any potential legal issues with each possibility, and the relative costs and benefits of each. Question Three (15 Minutes) Amy Amber is the owner of Amy’s Antiques, a sole proprietorship. Amy recently hired Betty Barnett to manage the store. She told Betty, can set prices and decide how to display items, but don’t do “You anything else without my permission.” Shortly after she was hired, Betty decided that some of the store’s display cases needed to be replaced. On November 1, without telling Amy, Betty called Fred’s Furniture and ordered new display cases for $2,000.
Beta Corporation is a Delaware corporation whose common stock is traded on the New York Stock Exchange. Arms-R-Us, a subsidiary of Beta, manufactures weapons and artillery shells. Arms-R-Us is profitable, but it is relatively small, so it accounts for a tiny proportion of Beta’s revenues, profits, and assets. Recent news stories have reported that some of the arms manufactured by Arms-R-Us have found their way into the hands of Sudanese guerillas who are fighting a violent, bloody civil war. Matak Maysaa owns about $5,000 worth of Beta’s common stock, less than 1/100 of 1% of the total outstanding. Matak is of Sudanese ancestry and is upset about the Arms-R-Us stories. He has written a letter to Beta’s CEO strongly urging him to get out of the weapons business, but the CEO has not responded. Matak would like to communicate with other Beta shareholders and urge them to do everything possible to get Beta out of the arms business. Discuss the different ways Matak may communicate his message to the shareholders and urge them to act, any potential legal issues with each possibility, and the relative costs and benefits of each. Question Three (15 Minutes) Amy Amber is the owner of Amy’s Antiques, a sole proprietorship. Amy recently hired Betty Barnett to manage the store. She told Betty, “You can set prices and decide how to display items, but don’t do anything else without my permission.” Shortly after she was hired, Betty decided that some of the store’s display cases needed to be replaced. On November 1, without telling Amy, Betty called Fred’s Furniture and ordered new display cases for $2,000.
BA%20Exam%202013.docx