In case 3, Fred and Sally plan on taking the company public after new found
success for Fred's Miracle Cough syrup. The company will go through a
process of initial public offering, or IPO, which will undertake a review from
the SEC. The SEC will review all requirements to go public, which include
financial statements, applicable accounting standards, and merits of any
transactions made by the company to ensure that investment is appropriate
for investors. When going public, Fred's Miracle Cough syrup may face legal
and regulatory issues that may effect the public offering. The first issue
would be the siphoning off of large amounts of corporate money and
fraudulent checks forged by Jane in the owners name. The hiring of qualified
accountant Ted to over see any possible discrepancies in book keeping,
should help when dealing with applicable accounting standards during the
SEC review. Another issue that would effect the company during their IPO
would be the sexual discrimination claim made by Tammy against the
company and Fred personally. The claim would need to be taken very
seriously and the company should make sure they are complaint with all
requirements made by the Equal Employment Opportunity Commission.
Fred's Miracle Cough Syrup should look into creating a human resources
department to ensure all employee are being treated fairly. They can ensure a
proper investigation be made for any future discrimination claims at the
company.*
References
Know your rights workplace rights - dol. (n.d.). Retrieved April 7, 2022,
from*https://www.dol.gov/sites/dolgov/files/ofccp/regs/compliance/
factsheets/FACT_Workplace_Aug2016_ENGESQA508c.pdf
Kubasek, N. et.al., (2020). Dynamic Business Law, Fifth Edition. New York,
NY: McGraw-Hill Education
