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Posted: September 2nd, 2022
ABC Company
ABC Company
Description
Assume the following facts:
1.ABC Corporation is the owner of 50 radio stations in major markets throughout the United States.
2.The stations all feature one of three music formats: Hip Hop, Smooth Jazz or Rap.
3.ABC has ten owners, each of whom owns 10% of the shares of the corporation.
4.The ABC Board of Directors, having become increasingly concerned about the lyrics in Hip Hop and Rap songs and their influence on young people, decides to change the format of these stations to Contemporary Christian.
5.The Board of Directors makes this decision with the full knowledge the profits generated by Hip Hop and Rap stations are nearly four times greater than stations with a Contemporary Christian format. As a result, the annual profits of ABC will likely be reduced by 30% from prior years.
Your task is to prepare an essay (500 words) that addresses the following questions:
a.) Is the Board of Directors of ABC acting within its power when the decision to change formats is made? Why or why not?
b.) How, if at all, might you advise the Board of Directors to proceed before making this change?
c.) How, if at all, would your answer to #1 differ if the Board of Directors consisted of five persons, each of whom was one of the 10% owners of ABC?
Requirements: 500 words for 500/=. USE APA and not less than 3 CREDIBLE sources. Each question should be done in 150-200 words, in a paragraph with a subtopic. I expect 3 subtopics formulated from the 3 questions. READ the ASSUMPTIONS first before attempting these questions
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