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The Bank of Universal City ( BUC ) is a medium - size state banking organization that is located in Louisiana. BUC offers a good
The Bank of Universal City BUC is a mediumsize state banking organization that is
located in Louisiana. BUC offers a good variety of pro ducts and services, including checking
and savings accounts, a billpaying service, credit cards, business consulting, insurance, and
investing services. The CEO of BUC, Chuck Charles, has publicly stated that he intends to grow
the bank's assets by percent annually for the next five years. Although percent is a fairly
robust growth rate, it is not an impossible goal for BUC. In fact, last year, which was the first
year the plan was implemented, the bank's assets grew nearly percent. However, much of the
growth occurred because there was a significant increase in population when a large
manufacturing firm relocated to Universal City months ago.
With only three weeks remaining in the current fiscal year, Mr Charles is concerned that
actual growth for the year will fall well short of what is needed to keep the bank on track to
achieve its overall growth projections. As a result, Mr Charles has instructed the vice president
in charge of Univest, which is the investment management division of BUC, to find a way to
increase the amount of investment funds the bank currently manages.
As the assistant to the vice president of Univest, you are responsible for sales and thus get
paid a commission for the funds the division manages. Your boss and the CEO of BUC gave you
names leads of persons and organizations they think are good prospects for Uni vest. After
contacting the prospects, you discover that the only one who seems interested is Rudolph
Radcliff, the head of a radical religious organization based in Universal City. It has been
rumored that the organization, which is called Righteous Freedom Choice RFC funds
foundations based in countries that are not friendly to the United States. It is suspected that some
of the organizations RFC sponsors support terrorist activities around the world. A few days ago,
a col league told you that he thought RFC would be moving its funds to a new investment
organization because the firm that currently manages the funds refused to continue as its
investment adviser; it was discovered that the funds had been received from organizations that
are involved in illicit activities. This information was reported to your colleague during a
conversation that he had with two prominent businesspersons at a charity gala the previous
weekend. Your colleague noted, however, that the tone of the conversation suggested that the
two businesspersons were not on friendly terms with Mr Radcliff.
When your colleague relayed this information to you, you did not ask questions, such as
the names of the businesspersons, because you didn't expect to be involved with RFC Now, you
need to make a decision whether to pursue RFCs funds to help Univest and BUC meet their
growth objectives. Unfortunately, the colleague who told you the information about RFC is on
vacation for the next few weeks and cannot be contacted to answer questions you might have.
Univest's sales have been stagnant this year. As a result, if sales don't increase substantially
during the next several weeks, the commission you earn will be much lower than normal. And, if
your commission does not increase, you and your spouse will have to consider moving from the
luxurious house that you purchased five years ago. What should you do
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