Hello everyone,

Fred's Miracle Cough Syrup has overcome many setbacks and is now a successful company looking to become a publicly held corporation. A publicly held corporation is "a corporation whose stock is available to the public" and it begins by launching an IPO (Kubasek, 2020). An initial public offering or IPO is a helpful tool that allows the company to raise funds by offering shares in the company to the public.

There are several legal and regulatory risks Fred's Miracle Cough Syrup faces going forward as a result of past actions. The fraudulent accounting done by Jane, though resolved, poses a risk to the company. The company's bookkeeping and accounting methods will need to be thoroughly examined and verified by an accredited accountant before going public. Another risk Fred is facing the legal claim of discrimination currently at hand. Tammy, a delivery worker for the company was passed over for the bookkeeping position and asserts that it was due to sex discrimination. This case should be easily resolved in Fred's favor as the employee who was hired had more experience in the field and was therefore more qualified. Finally, the recipe for Fred's Miracle Cough Syrup was recently released by Bob, the drug store owner. While the situation was remedied there is still the risk of a competitor copying the recipe and lowering the value of the company. Therefore, I think that Fred should consider patenting his product before proceeding with the IPO.

References

Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (2020). Dynamic Business Law (5th ed.). McGraw-Hill Education.

NEED A REPLY TO THIS DISCUSSION