BUSINESS 110 The Case of the Generous Advisor

The Problem: The Case of the Generous Advisor

While sales of your core product are starting to pick up, in order to take the next product to market, you need to have enough in reserves to be comfortable with spending $15 million which will allow you to put your second product on the market. Thus, the Executive Group is actively seeking out ways to increase sales or find new investors. The CFO has come to you with an opportunity. He was at an NFL game courtesy of Adam's Financial Services. While talking with Marcus Adams, the owner of AFS, he laid out the current state of the company and its needs.

The next day, Marcus sent a proposal to G-BioSport: AFS would purchase $750,000 worth of stock at $1.00 per share in exchange for (a) managing the stock portfolio of the company as well as the principals [the Executive Board] as well as (b) providing consulting services. The fees for the consulting services would be a percentage of the increase of the value in the stock. AFS represented that because of its connections in the penny market, it would be able to assure that the stock was positioned well. AFS is willing to make this move based on the success of the current product as well as expectations for success for the new product.

1. The first step is to identify the ethical actor. In a sentence identify the ethical actor for this problem?

2. Identify the stakeholders. List the other stakeholders for this problem?

3. In two or three bullet points, identify any assumptions you are making about the problem?