Business
Situation: Riordan Manufacturing is looking to acquire the JJJ Company and has formed a confidential ad hoc committee to perform several functions including due diligence of JJJ Company. The ad hoc committee was appointed by the chairman of the board (COB) of Riordan Members of the committee are all familiar with one another and have worked together in the past in various capacities.
Accounting Team Representatives: John and Beth are both from the accounting team and have reviewed the files for JJJ Company and are preparing to report their findings to the CEO and COB. They are not sure JJJ is financially stable enough to move forward with the acquisition. John is has a BA in Accounting from University of Phoenix in 1990. He joined Riordan in 2004 as a staff accountant and promoted to Accounting Manager in 2007. He is a democratic leader whose focus is on sales profitability. Beth has a BA in Accounting from University of Phoenix in 2008; she came to Riordan in 2007 as accounting assistant after college graduation. She was recently promoted to staff accountant by John, the accounting manager. Laissez faire leadership style whose focus is on policies and procedures.
William is the chief executive officer (CEO) of Riordan and he just wants to get this acquisition done, but only if it means greater profit for the company and bigger dividends for the stockholders. Although he knows business, he relies on John’s advice for the details on accounting oversight. William, a finance major, is an MBA graduate of University of Phoenix in 2000. He has been president of Riordan since 2006, when he was hired by the COB. He is an authoritarian leader who is very bottom-line oriented.
Mark is the sales manager, and he is excited about JJJ’s sales numbers as well as the potential they bring to Riordan. He does not know anything about accounting, but he likes the prospect of acquiring their book of business. Mark has BA in History from University of Phoenix in 1995; he came
Accounting Team Representatives: John and Beth are both from the accounting team and have reviewed the files for JJJ Company and are preparing to report their findings to the CEO and COB. They are not sure JJJ is financially stable enough to move forward with the acquisition. John is has a BA in Accounting from University of Phoenix in 1990. He joined Riordan in 2004 as a staff accountant and promoted to Accounting Manager in 2007. He is a democratic leader whose focus is on sales profitability. Beth has a BA in Accounting from University of Phoenix in 2008; she came to Riordan in 2007 as accounting assistant after college graduation. She was recently promoted to staff accountant by John, the accounting manager. Laissez faire leadership style whose focus is on policies and procedures.
William is the chief executive officer (CEO) of Riordan and he just wants to get this acquisition done, but only if it means greater profit for the company and bigger dividends for the stockholders. Although he knows business, he relies on John’s advice for the details on accounting oversight. William, a finance major, is an MBA graduate of University of Phoenix in 2000. He has been president of Riordan since 2006, when he was hired by the COB. He is an authoritarian leader who is very bottom-line oriented.
Mark is the sales manager, and he is excited about JJJ’s sales numbers as well as the potential they bring to Riordan. He does not know anything about accounting, but he likes the prospect of acquiring their book of business. Mark has BA in History from University of Phoenix in 1995; he came