Emily and Richard's investment in Faster Distribution Compan
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Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise.
Recently, Emily and Richard have invested in Faster Distribution Company Incorporated, a small publicly traded company. They each own 40% of the stock of Faster Distribution. Leeds is a U.S. corporation with its common stock traded on the New York Stock Exchange. The Leeds' home office is in London, and Faster Distributing Company is registered and located in Germany.
Faster is prepared to pay $125,000 to a German politician to allow Leeds' purchase of Faster to proceed.
Would you condone this?
Why or why not?
Support your reasoning with a law or regulation that allows or prohibits this.
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This solution gives you a detailed discussion on Emily and Richard's investment in Faster Distribution Company
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Would you condone this? Why or why not?
No, I would not condone this. The reason for this is that $125, 000 being paid to a German politician is bribe and this is unethical. The purchase of Faster by Leeds should be legal, above board, and should be in compliance with German laws and regulations. The exact reason why the bribe is being paid is not written but there must be some law being violated or a regulation being bypassed.
From the deontological ethical point of view of Leeds it is its duty not to pay bribes to corrupt ...
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