BUS 532
Professor Allen

STUDY QUESTIONS FOR LOTUS DEVELOPMENT CORP.:
SPOUSAL EQUIVALENTS (A)

1. Why is Campanello considering the proposal?

2. What would be the likely costs and benefits of Lotus offering benefits to emploee spousal equivalents?

3. What kind of response can Camponello and Lotus expect from the market and investors? from competitors? from employees?

4. What should Campanello decide? Why?