Ethics Case: Alternative Sources of Cash.Stacey Jensen, the founder and the owner of a major portion of the stock for Computers R Us, wants to raise cash by issuing bonds to open four new offices. Brian , 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, Brian can purchase all of the shares of the new stock and take control of the company. Stacey does not have the personal funds to purchase the new stock. Brian has plans to expand the company by opening offices in several cities and would like to make Stacey a minority owner.
1. If the company cannot afford to take on more debt, is Stacey acting ethically by issuing debt?
2. Is Brian acting ethically by trying to take over Stacey's company?
3. What is the ethical dilemma?