Decided to negotiate merger with another bus company

Assignment Help Operation Management

Reference no: EM132306317

The Red Bus Limited (RB Ltd) had decided to negotiate a merger with another bus company, the Coast 2 Coast (C2C Ltd) Limited. At the first meeting, RB Ltd stated that the merger was needed to improve its performance and that it was very important to see a true statement of C2C Ltd’s accounts in order to make a decision. In response, C2C Ltd said it would bring its accounts up to date to show how well the company was performing. The accounts presented for 2017 showed a net income of $66,000 prior to tax. C2C Ltd further stated that based on the figures presented they would make a profit of $25,000 for the year ending 31 March 2017. Convinced that the profit would allow the company to increase the number of buses and expand the business, RB Ltd agreed to the merger. On 31 March 2017 the final statement of accounts for C2C Ltd showed a $50,000 loss instead of the $25,000 projected profit. C2C Ltd did not reveal that it was technically insolvent and intended to stop its operations if negotiations with RB Ltd were unsuccessful. RB Ltd has alleged that the forecast for 31 March 2017 was inaccurate. The representative from C2C Ltd has emailed a reply that the statement was merely an opinion about future performance. RB Ltd has a claim for damages and needs a remedy for the problem that has arisen.

1. Based on the facts given, advise RB Ltd why you believe that you will be able to argue a successful case on their behalf.

2. Identify the issue (and define what it means) that may give rise to an action by RB Ltd against C2C Ltd.

Reference no: EM132306317

Questions Cloud

Directed to update the social media policy for the firm : You are the HR Director in your firm and you have been directed to update the social media policy for the firm.

The way you enforce company policy : You’re a new manager in your company and the employees that report to you are not pleased with the way you enforce company policy.

Steps necessary to resolve customer complaint applicable : What are the steps necessary to resolve a customer complaint applicable to nearly all services incidents? Explain.

Minimizes information asymmetry in implementation process : What is needed is the use of an implementation methodology that minimizes the information asymmetry in the implementation process,

Decided to negotiate merger with another bus company : The Red Bus Limited (RB Ltd) had decided to negotiate a merger with another bus company, the Coast 2 Coast (C2C Ltd) Limited.

Car situation : I bought a car from a friend (a jeep liberty), I paid $3000 dollars total. The car does not have a registration liscense plate.

Core ideology defines the character of the organization : Core ideology defines the character of the organization that remains consistent through time

Types of information or data formats made within EHR system : What are two different types of information or data formats made within the EHR system, like , text files or discrete data give me details about these two ?

Many japanese export industries were oligopolistic : In the 1980s, many Japanese export industries were oligopolistic—that is, they consisted of a few large firms able to set the prices for their own products.

User Account

All Pages