Individual Project: Case Analysis
March 14, 2022
ISSC 451
March 14, 2022
Explain the problem or dilemma or management decision presented in the article.
The article presented displays a rampant problem in the managerial spectrum which is the lack of formal involvement in a company’s business issues. The digital asset offered by the company was not legally recognized, which basically means Rivetz international was not operating its business in a legal manner. The government’s major interest in the corporation is the safety of its customers or clients. When a seller breaches a contract, it is the buyer’s responsibility to bring a lawsuit against the seller. A product’s seller or producer may also be held liable if it causes physical injury to the consumer. Companies are required to provide financial information by law in order to safeguard the interests of investors and to promote fresh investment. This is often accomplished by filing with the Securities and Exchange Commission. The question of whether or not federal regulation is required is still being debated.
Explain how current practices are a problem, and identify options recommendations (2 or 3 ideas are sufficient) the company can do to fix them going forward. Put yourself in the role of a consultant hired in to advise the company on its next steps.
The company violated the Securities Act of 1933, specifically Rule 144, which controls the trading of stocks. Under federal securities rules, some kinds of securities may be categorized as restricted or controlled securities. Selling securities that are limited or regulated on the open market may be problematic. There must be an SEC registration or an exemption from registration for all securities offers and transactions under federal securities laws and regulations. In order to avoid being forced to register, you may need to take further steps if you possess securities that are prohibited or strictly regulated. The company could, however, engage legal measures and resolve the case outside the court. Another solution could be offering legal compensation for the investors and offering a lower entry share level to the company as a way of apologizing and restoring investors’ faith after resolving the issue.
Select one ethics principle or theory to apply to the situation described in your article.
According to the results, utilitarianism may be considered an ethical theory fit to describe the above article. One of the most well-known examples is the action of consequences. According to utilitarianism, the most ethical decision is the one that delivers the greatest amount of benefit to the largest number of individuals. It is only when a military operation or war is justified by this moral framework that it can be considered legitimate. Aside from that, it is also the most often employed method to moral reasoning in business because of the way it accounts for both costs and benefits and the above case study has got more to do with a burdened cost to the investors than the benefit owing to the illegal operations presented in the securities offering.
Based on the decision-making model you select in Step 4, recommend one specific course of conduct for the company.
The rational model is the earliest attempt to comprehend how humans make choices. Some see it as the classic approach to understanding the decision-making process. In this case, based on this rational method, the business ought to address the most accurate law frameworks as the problem is already clear, their course of action should be to resolve the mistake they made in allocating illegal securities to the public. Based on the court’s ruling the company should accept their fault and compensate the investors rather than spend more money in petitions filed for the latter lawsuit.
