Please help, thank you!! THEORY B- Mundo MisticoTheory 2:Luther Lopez, the president and CEO of Mundo Mistico, Inc., a film production firm, was recentlyhospitalized, suffering from exhaustion and a heart ailment. Immediatety prior to his hospitalization,Mundo Mistico had experienced a sharp decline in its share price, and trading activity becarne almostnonexistent. The primary reason for this was concern expressed in the media over a new untested filmproduction system implemented by the company. Mr. Lopez had been unwiling to subrrit the procedureto testing before implementation, but he reluctantly agreed to limited tests after the system wasoperational No problems have been identified by the tests to date.The other members of management called a meeting to determine what they should do. ThanosAraneta, the marketing manager, suggested that the company purchase a large number of treasuryshares. In that way, investors might notice that activity had picked up, and might decide to buy somemore shares. This plan would use up mostof the company's available cash, so that there will be nomoney available for a cash dividend. Mundo Mistico has paid cash dividends every quarter for over tenyears.Is Mr. Araneta's suggestion ethical? Explain.2. Is it ethical to discontinue the cash dividend? Explain.

Ethics has become the most important function in business. It refers to the standards of morality…

Answered: THEORY B- Mundo Mistico Theory 2 Luther…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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