EB Wirerame Ahmed Bin Talal, he changed the character of the company from a small enterprise importing local partner ranian carpets and cashew nuts to Bahrain and Saudi Arabia to a large trading enterprise exporting and orting anything from food items and spices to heavy machinery within the Gulf region. Contributing to its several members of both families invested substantial amounts of their personal funds over the years in success, the company and became actively involved in its management. In the fall of 2014, Mohamad sees the company at a crossroads. With regional competition increasing, be is determined partner. The required funds are estimated to be well beyond the financial means of the two families. The families are considering taking the company public by issuing 5 million shares at BD4 w Mohamad also realizes that at age 64, his days ahead, he would like to hire a team of managers with the international experience necessary to implement his corporate vision. to extend the company's geographic reach to the European Union, the Gulf region's largest trading BD20 million (Bahraini Dinar, the equivalent of US$53 million) hich would subsequently be listed at the stock exchange in Manama. ei as active head of the company are numbered. With the challenges QUESTIONS 1. Discuss the consequences of the proposed change from a partnership to a corporation in terms of advantages and disadvantages 2. Describe potential agency conflicts that can arise when hiring a management team and suggest possible solutions. 3. Determine the amount of cash the company would generate from going public. Does it matter to the company whether the share price rises subsequent to the IPO? Who benefits from an increase in the company's share price? 4. Do you see a tradeoff between a company's focus on share price maximization and the adherence to social and ethical standards? EB Wirerame Ahmed Bin Talal, he changed the character of the company from a small enterprise importing local partner ranian carpets and cashew nuts to Bahrain and Saudi Arabia to a large trading enterprise exporting and orting anything from food items and spices to heavy machinery within the Gulf region. Contributing to its several members of both families invested substantial amounts of their personal funds over the years in success, the company and became actively involved in its management. In the fall of 2014, Mohamad sees the company at a crossroads. With regional competition increasing, be is determined partner. The required funds are estimated to be well beyond the financial means of the two families. The families are considering taking the company public by issuing 5 million shares at BD4 w Mohamad also realizes that at age 64, his days ahead, he would like to hire a team of managers with the international experience necessary to implement his corporate vision. to extend the company's geographic reach to the European Union, the Gulf region's largest trading BD20 million (Bahraini Dinar, the equivalent of US$53 million) hich would subsequently be listed at the stock exchange in Manama. ei as active head of the company are numbered. With the challenges QUESTIONS 1. Discuss the consequences of the proposed change from a partnership to a corporation in terms of advantages and disadvantages 2. Describe potential agency conflicts that can arise when hiring a management team and suggest possible solutions. 3. Determine the amount of cash the company would generate from going public. Does it matter to the company whether the share price rises subsequent to the IPO? Who benefits from an increase in the company's share price? 4. Do you see a tradeoff between a company's focus on share price maximization and the adherence to social and ethical standards