Business Finance

Lesson 05 Assignment

You are the HR Director for regional supermarket. The firm exists as a partnership and had become very profitable over the past several years. All of the partners are related by birth (you are not one of the partners). One day Louise, the managing partner, pulled you aside to let you know that the partners had decided to incorporate, offering several million shares of stock as an initial stock offering. Louise said she thought it was a step that made sense and would raise substantial amounts of cash that could be used to fund expansion. She then raised the following question: Would incorporation require a change in the company’s relatively generous decision to offer family friendly benefits?

In a paper of between 750 and 1000 words, compare and contrast the manner in which Milton Friedman, and Linda Trevino and Katherine Nelson would respond to this inquiry.