Describe the Practices of Systems Buying and Systems Contracting

question 141

Essay

Describe the practices of systems buying and systems contracting.

Understand the reasons behind the prevalence of debt offerings over equity offerings.

Comprehend the challenges involved in pricing an Initial Public Offering (IPO).

Explain the rationale and process behind rights offerings and compare them to general cash offers.

Evaluate the strategy of issuing equity via rights offerings from both the firm's and the stockholder's perspectives.

---

Definitions:

Responsibilities

Duties or obligations that individuals or organizations are expected to fulfill or carry out in their roles.

Proactive

Taking initiative by acting in advance of future situations rather than just reacting, to bring about positive change.

Ethics Intensity

The degree of importance given to the ethical dimension of decisions and actions.

Boards of Directors

A group of individuals elected to represent shareholders and make major decisions concerning the strategic direction of a company.