Companies must meet requirements set by the Securities and
Exchange Commission (SEC) to hold an Initial Public Offering (IPO).
This provides companies the opportunity to earn capital from selling
shares of their company. Any time a company is taken public they
must be prepared to open their doors for the world to view. Fred and
Sally will need to be prepared to be as transparent as they can with
the details of their business. Things such as company history,
operations, management, and financials.
With their recent bookkeeping inaccuracies hiring an accountant
outside of the family should help them get the companies books back
on track. Jane's indiscretions have not gone public, so there hasn't
been any negative attention on the company. They may not be as
luck with the sexual discrimination claim made by Tammy. They
should be prepared to prove not only to a court, but to the public as
to why they chose Tim over Tammy. This should be easy to do, with
documentation on each candidates level of experience or credentials.
They may want to consult a lawyer to ensure they don't over step
any boundaries when doing so.
Fred's Miracle Cough Syrup has had some real personnel issues in
their couple of years of business. Though Fred and Sally are not at
fault for any of it, they need someone in place that can help them
handle this in case there are any future issues. We all know with
personnel comes personnel issues, and who better to deal with them
than the Human Resource Department. Human Resource is a tough
field to work in, you have to deal with the people as well as the laws.
Have someone in place that has the knowledge to handle these type
of situations, and it will keep the company out of the hot seat.
Kubasek, N. et.al., (2020). Dynamic Business Law, Fifth Edition. New
York, NY: McGraw-Hill Education
