Sandra Madson , the founder and the owner of a major portion of the stock for Computer Technology, wants to raise cash by issuing bonds to open four new offices. Emily Christensen , who owns 35% of the stock but doesn't work in the company, wants the company to raise money by issuing stock. In this way, Emily can purchase all of the shares of the new stock and take control of the company. Sandra does not have the personal funds to purchase the new stock. Emily has plans to expand the company by opening offices in several cities and would like to make Sandra a minority owner.
1. If the company cannot afford to take on more debt, is Sandra acting ethically by issuing debt?
2. Is Emily acting ethically by trying to take over Sandra's company?
3. What is the ethical dilemma?