Ethical decision making: A dilemma Ethical issues have greatly transformed in our lives since the great Enron‚ Xerox and other huge corporations proposed big profits showing earnings of billions of dollars and yet in reality facing bankruptcy. These corporations faced great trouble with the federals and state for manipulating financial statements. But not only corporations can be blamed on this‚ accounting firms were involved in this as much as the corporations were. With the business stand
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Our client‚ Mr. Perez wants to start a new business‚ but he is debating whether to start a S corporation or a C corporation due to potential environmental factors associated with his business. He wants to maintain a limited liability and wants to avoid double taxation by paying himself a salary equal to his companies before tax earnings. He also would like to issue preferred stock to his son in the future to keep his interests in the business. He was advised by his friend to choose a C Corporation
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Enron’s Questionable Transactions 1. Which segment of its operations got Enron into difficulties? * The fact that Kopper was appointed to Fastow and he was an employee at Enron was the first thing that got them into trouble. Another reason was that over 11 million was invested and it ended up not being invested at all. I believe these two situations ended up being the start of Enron’s problems. Enron also was not reporting the revenue for service correctly and his stock was paid by
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When Jeff Skilling took the major energy company Enron over‚ he contributed to the hiring and development of an entire corporation with a crooked staff whom were corrupt all the way from the bottom employees to the top executives. Top executives “cooked the books” through a certain structured finance including accounting ambiguities‚ special purpose entities‚ and poor financial reporting. They were able to hide billions of dollars in debt from failed deals and projects. CFO‚ Andrew Fastow and other
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or could have been done to stop the situation 4. If there were proper or sufficient controls‚ what went wrong? Paramalat: Summary: “In December 2003‚ Italian prosecutors launched an investigation into suspected fraud at global food group Parmalat after it revealed a gaping hole in its accounts. The company‚ known around the world for its long-life milk‚ stunned financial markets on Dec. 19 when it said a document showing 3.95 billion euros ($5.07 billion) held by a Cayman Islands subsidiary
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1. How does Berkshire Partners create value? Berkshire partners believes in creating values “based on successful relationships‚ hard work‚ analysis‚ and the open decision making of all individuals” (Partners) They do not see the acquiring company as just a financial investment but as an investment in a relationship between two living entities. They work hard in collaboration with the acquired firm to do the analysis and research and consult all individuals in both firms regarding the future of the
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Enron Corporation Question 1‚ In my point of view‚ the parties are most responsible for the “crisis of confidence” on the part of the public in the accounting profession as following. • The parties who create these auditing standard rules‚ such as SEC‚ Auditing Standard Board. They should publish the Sarbanes-Oxley Act earlier. They should be considered the non-auditing services for auditing clients is a serious issue earlier. • The auditors of the Andersen firm. They didn’t do their
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HAIER : Taking a Chinese Company Global Overview: Haier Group found in 1984 was a failing refrigerator company when Director Zhang came into force.At that time he did what he will be doing best in the coming years and signed a licensing agreement with German refrigerator company Liebherr. In 1986‚ Haier reached a profit of 1 Mio RMB. Altough there was a huge market demand‚ the company resisted mass production and continued to focus on quality and brand-building instead.The company’s target was
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am detailThe ENRON Scandal is considered to be one of the most notorious within American history-White Collar By misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors not privy to the true financial condition of ENRON‚ the executives of ENRON embezzled funds funneling in from investments while reporting fraudulent earnings to those investors; this not only proliferated more investments from current stockholders‚ but also attracted new investors desiring
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in the United States and around the world. This business philosophy of owning various types of stores has allowed Wal-Mart to reach more people and sell a wider variety of products‚ which has enabled Wal-Mart to create a larger customer base. In the case presented in the textbook‚ Wal-Mart was trying to penetrate the markets in Argentina and Brazil by attempting to create a different shopping experience for consumers. However‚ because of the nature of the supermarket industry in Argentina and Brazil
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