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Please write a 1 page APA report using the following scenario. Please use the format of the attached document. Roger is a director of a major car manufacturer. This is one of the few remaining car...

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Please write a 1 page APA report using the following scenario. Please use the format of the attached document.

Roger is a director of a major car manufacturer. This is one of the few remaining car companies yet to introduce a sport utility vehicle. Roger convinces the board to investigate forming a new division to design, build and market a sport utility vehicle. Roger also convinces the board that the first sport utility vehicle that the division introduces should be the largest yet sold to the general public.

The board set up a committee to do some research, and this committee hired a marketing consulting firm. The committee and the consulting firm both had a few reservations about such a large vehicle, but the data showed that the market could most likely support it. After much discussion, the board of directors voted in favor of creating the new division and the huge sport utility vehicle as its first product. The vote was 9 to 6 in favor of the plan.

Shortly before this vehicle was introduced, there was a major oil supply disruption that caused the price of crude oil to nearly triple. Few purchasers were found for the huge new sport utility vehicle and the company lost considerable money. A shareholder files suit against Roger claiming he violated his duty to the corporation by convincing the board to build and market the large SUV.

Discuss Roger's duties as a director and any defenses he has to the lawsuit.

Answered Same Day Dec 24, 2021

Solution

Robert answered on Dec 24 2021
107 Votes
The paper discusses the lawsuit filed by a shareholder of car manufacturer against Roger
alleging him of violating his duty as a director by convincing the board to launch a Sports Utility
Vehicle. It is the duty of a director to act in the maximum interests of the shareholders of the
company (Daves, 2007). This includes targeting the growth of the company, adding economic
value to the company, giving returns to the shareholders and making sure that the company is
eing run in an ethical way abiding the laws, regulations and accounting procedures for the firm,
executives and directors (Myers, 1984).
Roger being the director of the car manufacturing company was quite...
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