Brookside Stables, Inc., operates several horse-racing tracks throughout Canada. Since most facilities are outdoor tracks only, most of the cash receipts for Brookside are received from April through October. These funds are usually invested in short- term, very liquid investments, such as equities and bonds. Among the equities purchased last year was Servitronics, a company specializing in automatic vending equipment. The company decided not to sell its Servitronics shares at the end of last year, and has purchased more of the shares this year. The company intends to continue to purchase shares until it holds enough to make a takeover bid for the company. The accountants have been instructed to continue to classify the shares as a short-term, Held For Trading investment, until the takeover is accomplished, so that less attention will be directed to it. Currently, Brookside has no long-term investment in equities at all. Required: 1. Is it ethical for a company to attempt to take over another company? Explain. 2. Is it ethical for Brookside to leave its investment in the short-term investment category? Explain