Mork and Mindy create a for-profit corporation, Mork's House, to provide shelter to homelessand abused women and children. Mork and Mindy are shareholders of the corporation. Zada isalso a shareholder in the corporation, along with five others. Douglas manages the day-to-dayoperations of the corporation. The bylaws of the corporation provide that the corporation isestablished for the sole purpose of providing shelter, food, and care for homeless and abusedwomen and children and for no other purpose. When the refrigerator in Mork's House stopsworking, Douglas purchases a new refrigerator from Home Depot and charges it to thecorporation. If Zada challenges the purchase as being ultra vires:she will lose, because purchasing the refrigerator is an express power of thecorporation.she will lose, because purchasing the refrigerator is an act reasonablynecessary to accomplish the goals.she will win, because the bylaws do not address purchases of appliances.she will win, because purchasing the refrigerator is an ultra vires act.

Introduction: In this scenario, Mork and Mindy have created a for-profit corporation called Mork's…

Answered: Mork and Mindy create a for-profit…

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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In 1961, Ford Motor Company acquired Autolite, a manufacturer of spark plugs, in order to enter the profitable aftermarket for spark plugs sold as replacement parts. Ford and the other major automobile manufacturers had previously purchased original equipment spark plugs (those installed in new cars when they leave the factory) from independent producers such as Autolite and Champion, either at or below the producer’s cost. The independents were willing to sell original equipment plugs so cheaply because aftermarket mechanics often replace original equipment plugs with the same brand of spark plug. GM had already moved into the spark plug market by developing its own division. Ford decided to do so by means of a vertical merger under which it acquired Autolite. Prior to the Autolite acquisition, Ford bought 10 percent of the total spark plug output. The merger left Champion as the only major independent spark plug producer. Champion’s market share thereafter declined because Chrysler…
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