Adelphia Case Discussion Preparation

Adelphia Case Discussion Preparation - Joe Littman BUS 101...

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Joe Littman BUS 101 CC Adelphia Case Discussion Preparation 1. Primary stakeholder in this case is the owners. 2. The owners are the primary stakeholder because this case is centered around the unreported loans taken by the Rigas family from company funds, which are technically the owners money. 3. The owners want the company to maximize its profits and grow so they can see their holdings in the company become more valuable. 4. The board of directors has a fiduciary responsibility to the owners. They are supposed to operate the company based on the wants of the owners and leave any personal interests out of business decisions. 5. No the board did not act appropriately, the members of the Rigas family were taking advantage of the companies funds and using them as their own when they weren’t. They allowed a conflict of interests lead them to make decisions that did not benefit the company as a whole but only benefited themselves. The other members of the board that weren’t involved in the fraudulent activities should
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This note was uploaded on 12/28/2011 for the course HST 112 taught by Professor Winkler during the Fall '08 term at Miami University.

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