1. Business OrganizationGreen Corporation (GC) is stock corporation engaged in the events management.The major customers of GC are companies engaged in concerts, trade fairs andexpositions, weddings, corporate events and seminars in the different eventscenters in Metro Manila, Clark, Cebu and Davao.Due to the effects of the pandemic, GC would need to increase their capital to givethem more funds to survive the economic challenges for the next 2-4 years. Theoriginal investors who control more than 50% of the stocks, fear that the companymay not survive the pandemic if they did not increase their capital.The Board of Directors identified 3 options below to increase their capital and getadditional funds:a. Enter into a joint venture with their competitor Blazing Company (BC).b. To sell additional preferred shares in the stock market.c. To sell additional common stocks in the stock market.Question:I.II.What option shall you recommend to your Board of Directors for thecompany to take and why did you choose this option?What would be the financial risks if the company chooses this option

Business conditions can change abruptly, prompting management to restrategise for the timely…

Answered: I. II. What option shall you recommend…

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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I. II. What option shall you recommend to your Board of Directors for the company to take and why did you choose this option? What would be the financial risks if the company chooses this option