ETHICS CASE avers9 The Raid) division of Nskona Chemical Corp. has just developed a chemical for sterilizing the vicious Brazilian "killer bees" which are invading Mexico and the southern states of the United States. The president of Nakona is anxious to get the chemical on the market to boost Nakona's profits. He believes his job is in jeopardy because of decreasing sales and prof- its. Neitona has anopportunjty to seil this chemical in Central American countries, where the laws are much more relaxed than in the United States. . The director of Nakona's RSLD division strongly recommends further testing in the inho- ratory for side-effects of this chemical on other insects, birds, animals. plants, and even humans. it\" CHAPTER 12 Corporations: Organisation, Stock Transactions, Dividends and Retained Earnings He cautions the president, "We could be sued from all sides if the chemical has tragic side- et'focts that we didn't even test for in the labs." The president answers. \"We can't wait an ad- ditional year for your lab tests. We can avoid losses from such lawsuits by establishing a sepa- rate wholly owned corporation to shield Nakona Corp. from such lawsuits. We can't lose any more than our investment in the new Corporation. and we'll investjust the patent covering this chemical. We'll reap the benets it the chemical works and is safe, and avoid the losses from lawsuits if it's a disaster.\" The following week Nelsons creates a new wholly owned corporation called Marques Inc.. sells the chemical patent to it for $10, and watches the spraying begin. Instmcrions {a} Who are the stakeholders in this situation? (In Are the president's motives and actions ethical? (c) Can Nakona shield itself against losses of Marques Inc