Finial project memo

Final Project Memo Student’s Name Institution Course Professor’s Name Date From: To: Date: Re: Introduction Business life and family life are two dependent and interconnected aspects. Javier’s family business had initially faced many difficulties, and they collectively worked towards mending the underlying issues. Once Javioer’s Very Hot Sauce! made a rebound, the company growth was exponential. A popular talk show featuring a prominent chef had a minor session with the business, and the net sales increased immediately. After receiving a series of orders from big-box chains countrywide, Javier and Elena were advised that it was the best time to publicize their business. However, a past encounter with Manya could tarnish their name at this critical moment. Even though Manya applied for a bookkeeping job at Javier’s Very Hot Sauce!, a man with no degree and no previous experience was given that job. This paper will legally analyze the facts and determine the possibility of publicizing the company. Regulatory Issues Three legal issues could impact Javior’s Very Hot Sauce! public offering. First, the sex discrimination claim filed by Manya is the most immediate legal issue that the company should resolve peacefully before going public. Manya is an accountant with a degree. She was overlooked for a bookkeeper position at the company in favor of Marcos, a man with no experience or qualifications. Javier clarified to Manya that he needed a man for the job. This violates Title VII of the Civil Rights Act 1964 (Congressional Research Service, 2020). If the claim escalates into a lawsuit, the company could face serious legal consequences, including fines, penalties, and damages awarded to Manya. The case could draw negative media attention, which is particularly harmful as the company is gaining national exposure. Corporate governance and compliance is another regulatory issue evident in the fact pattern of this company that will affect the public offering. Javier and his family have run the business without standardized protocols and operating procedures. Javier and Elena appear to be running their company without formalized governance structures. This informal management style may have worked while the company was privately held, but it must evolve before it can go public. Going public introduces heightened scrutiny from regulators, investors, and the public. According to Bajra and Asllanaj (2021), accurate financial reporting and compliance with the Sarbanes-Oxley Act protect investors from fraudulent accounting activities. Javier still needs to implement the necessary governance structures in the company, and going public may attract regulatory penalties. Javier’s Very Hot Sauce! lacks the necessary securities regulation and disclosure requirements before going public. These regulations require extensive disclosures to ensure investors are fully informed about the company’s financial health, risks, and management practices. Manya’s case may impact this report because it must be reported if they agree on a settlement. I...