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| 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? |
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| There is no answer at this time. |
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| 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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