Wilcox, chief executive officer and chairman of the board of directors, owned 60 percent of the shares of sterling corporation. when the market price of sterling’s shares was $22 per share, wilcox sold all of his shares in sterling to conrad for $29 per share. the minority shareholders of sterling brought suit against wilcox demanding a pro rata share of the amount wilcox received in excess of the market price.
a. what are the arguments to support the minority shareholders’ claim for a pro rata share of the amount wilcox received in excess of the market price? b. what are the arguments to reject the minority shareholders’ claim for a pro rata share of the amount wilcox received in excess of the market price? c. which side should prevail?

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.