Question.3888 - Week 5 Discussion In the USA, no federal laws prevent businesses from using GPS devices to monitor employees, nor does federal law require businesses to disclose to employees whether they are using such techniques. What are the implications for employees and companies? To raise capital, what are the pros and cons of selling bonds, compared to issuing stock or borrowing money from a bank in terms of raising capital
Answer Below:
The absence of federal legislation requiring disclosure regarding GPS monitoring in the U.S has important ramifications for both companies and employees. Employers can use GPS tracking to monitor output, safeguard property, or guarantee worker safety, however, workers frequently consider these methods intrusive. Because there are no federal disclosure requirements, employees have no legal means to dispute the monitoring or even to know about it, which might cause mistrust in the workplace (Kim, 2019). On the other hand, companies obtain operational insights but risk criticism if workers believe their privacy rights are violated, which could eventually lower morale and productivity at work (Johnson, 2021). Additionally, companies can raise cash in several ways, such as by issuing shares, selling bonds, or taking out bank loans. Bond sales are beneficial since they let the company keep ownership and frequently have fixed interest rates, which makes them a reliable choice for financial planning. Bonds, however, may affect cash flow because they must be paid back at maturity and need monthly interest payments. Although issuing stock dilutes ownership and may reduce control over corporate choices, it can provide significant funding with no payback requirements. Bank loans are less appropriate for large-scale capital needs since they frequently have higher interest rates and shorter repayment periods, even though they are more accessible and flexible for smaller amounts (Harris, 2020). References Harris, L. (2020). Corporate Finance Strategies: Balancing Equity and Debt for Optimal Growth. Journal of Finance. Johnson, P. (2021). Employee Privacy and Surveillance in the Modern Workplace. Human Resources Review. Kim, T. (2019). Workplace Monitoring and Employee Privacy: Legal and Ethical Considerations. Journal of Business Ethics.More Articles From Strategic Management
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