The Board of Directors of Bombardier Inc. (“BI”) has recently hired your group to act as consultants to the company. The Board is upset with the recent financial results, plummeting stock prices and scandals. It wants your consulting firm to report back on its trend of financial results and whether the recent (2020) scandals are a breach of

Based on research on the Internet (do not use Wikipedia as your source), you are to prepare a report in MEMO form, which will outline the following:

1. Identify a potential breach of ethics by BI in 2020 and identify which part(s) of the company’s Code of Ethics would have been breached.
2. Do you think that BI has been a good corporate citizen in recent years? Explain why you chose your answer and give specific examples.
3. BI has had some recent financial challenges. Pierre wants your group to access the financial statements for the year ended December 31, 2019 and calculate the BEP for 2019 and 2018. Cost of sales are to be treated as variable expenses. All other expenses are fixed. Has the BEP before income taxes improved or deteriorated in that time frame? What has the margin of safety been for those two years? Is the company generating positive margin of safety.