...her search. She saw that the typical target price for medical start ups was $10 during the initial offering. She would lose $20,000 from her salary decrease, but make $262,000 from 30,000 shares in the company. This was not guaranteed and no one at the company could promise these results, but she took the risk anyways. Grantz, the founder and CEO of the company, sold MoniMed to CV Diagnostix just prior to the IPO causing the price of shares to drop to 27 cents per share. Gallagher and the other employees suffered while Grantz made $2.5 million on the acquisition. Was Grantz ethically wrong to withhold the financial status of the company from his employees and shareholders because it prevented them from making an informed decision? By analyzing this case according to the Act Utilitarian theory, it was immoral for the CEO and founder Barry Grantz to withhold the financial records of his company from Leanne Gallagher. When Gallagher interviewed for her position in Grantz’ organization, she was seeking not only a paid salary position, but also the stock offer of 30,000 options at 30 cents a share. By accepting the job it put Gallagher in the role of both an employee and a stockholder. Act Utilitarian theory says that an action is good if it benefits someone,...
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...Business Plans Handbook Business Plans A COMPILATION OF BUSINESS PLANS DEVELOPED BY INDIVIDUALS NORTH THROUGHOUT AMERICA Handbook VOLUME 16 Lynn M. Pearce, Project Editor Business Plans Handbook, Volume 16 Project Editor: Lynn M. Pearce Product Manager: Jenai Drouillard Product Design: Jennifer Wahi Composition and Electronic Prepress: Evi Seoud Manufacturing: Rita Wimberley Editorial: Erin Braun ª 2010 Gale, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. This publication is a creative work fully protected by all applicable copyright laws, as well as by misappropriation, trade secret, unfair competition, and other applicable laws. The authors and editors of this work have added value to the underlying factual material herein through one or more of the following: unique and original selection, coordination, expression, arrangement, and classification of the information. For product information and technology assistance, contact us at Gale Customer Support, 1-800-877-4253. For permission to use material...
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