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Q: Financial Governance ( No Answer,   1 Comment )
Question  
Subject: Financial Governance
Category: Miscellaneous
Asked by: laravo-ga
List Price: $4.00
Posted: 19 Nov 2005 23:49 PST
Expires: 19 Dec 2005 23:49 PST
Question ID: 595357
After corporate scandal such as Enron and WorldCom many investors and
chief executives have been asking: when is a company to big to be
managed effectively? In order to look into this question we imagine a
company specialized in tourism, It organizes tours for people, who
enjoy wandering in the mountains, and after having arranged guided
hours for about fifteen years it is the only operator. Tourists are
lodged and have their meals in cottages, where the company employs
local employees (usually a husband and his wife living in a
neighbouring village) to maitain the cottages and to serve the
tourists.  The costs of running these cottages have increased
dramatically and according to the CEO this has to do with difficulties
to attract qualified personnel in these remote vllages. The board has
suggested to the shareholders that the company should be split up and
the cottaages should be sold to the families employed. The contract
for the sale includes a clause saying that the price of a service
produced for the company will set according to the quality of the
service and these relations will be regulated by contracts that run
for periods of five years.
Would a sale be in an appropriate solution for all parties or are
there more efficient solution?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Financial Governance
From: gunhead-ga on 20 Nov 2005 01:55 PST
 
i think the problem you have here is that wooda is too gun

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