15. A, a director with X Corporation, and B, a director with Y Corporation, beli
ID: 383154 • Letter: 1
Question
15. A, a director with X Corporation, and B, a director with Y Corporation, believe that their corporations are too much alike and that something ought to be done to eliminate their competi tion. What possible steps might be taken? XYZ Corporation declared a cash dividend on common stock Before the dividend was paid, the board of directors voted to revoke the dividend on grounds that, due to changed circum stances, the corporation needed the funds. Ca holders of the common stock force the company to pay the dividend? Explain 16.Explanation / Answer
Answer No. 15
- First of all they should adopt product differentiation strategy so that their products are altogether different.
- Culture of the company is a key element while doing business in the same segment. Company HRD should roll out program like Organizational Health Index survey to find out the current health of the organization and overcome with the factors which are creating obstacles in the organizational growth.
- A whole new marketing mix strategy should also be adopted and use of new online channels should be used to promote the products in the market.
Answer 16:
The board of directors are the key members of the company who has sole responsibilities on company's business and to make strategic decisions over company's performance therefore due to changed circumstance and in the need of funds for the organization, board of directors can take the decision for not to pay dividend for a certain period and shareholders can not force them to pay the same as a right.
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