Question

"ForeignCo, with offices in 15 countries, including the US, engages Jim Securities Inc as an advisor to make corporate acquisitions for cash and securities. Shortly after signing an engagement letter, ForeignCo's CFO gives Robert, a banker on the deal team, a mandate to screen for potential acquisition targets with significant business in Cuba, Venezuela, and North Korea. At this point, Robert should"?

A) Comply with the mandate and proceed with the screening.
B) Refuse the mandate, as it involves dealing with restricted countries.
C) Seek legal advice before deciding how to proceed.
D) Inform Jim Securities Inc about the mandate but take no action until further instructions are received.

Answer 1

Robert should refuse the mandate as it involves dealing with restricted countries and may have legal and reputational risks. He should also inform Jim Securities Inc about the mandate and seek legal advice if necessary.

Step-by-step explanation:

Robert should refuse the mandate, as it involves dealing with restricted countries. Cuba, Venezuela, and North Korea are countries that are subject to various sanctions and restrictions imposed by the United States and other countries. It is important for businesses to comply with these restrictions to avoid legal and reputational risks.

By refusing the mandate, Robert can protect himself and his employer from potential legal consequences and maintain the integrity of their business operations. If they have any concerns or questions about the mandate, they can seek legal advice to ensure they are making the right decision.

It is also advisable for Robert to inform Jim Securities Inc about the mandate, as they may have specific policies and procedures in place regarding dealing with restricted countries. Taking no action until further instructions are received will help ensure that they are acting in accordance with the company's guidelines.