Introduction to Key Issues Dennis Shaughnessy is the senior vice-president for corporate development and Charles River Laboratories (CRL). He prepared a presentation to the company’s board of directors which request to invest up to $2 million in a Mexican joint venture (JV). They need to decide whether to do a joint venture between ALPES and CRL. Some other issues came out at the same time‚ Jim Foster‚ the CEO viewed the proposed joint venture as a potential distraction as his company continues
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responsibilities of a company’s board of directors? (b) Could the board of directors at Enron—especially the audit committee—have prevented the fall of Enron? (c) Should they have known about the risks and apparent lack of independence with Enron’s SPEs? What should they have done about it? The responsibilities of a company’s board of directors include: • Protect the shareholders’ assets and provide a return on investment • Make important decisions that affect shareholders (dividends) • Decide
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UNIVERSITI MALAYSIA PERLIS SCHOOL OF BUSINESS INNOVATION & TECHNOPRENEURSHIP BFT 503 businesss ethics & csr NAME : NUR AINUL MARDHIAH BINTI MD. ZULKIPLI MATRIC NO : 1333430136 Dr. Abdullah bin osman Enron : Questionable Accounting Leads To Collapse History ENRON CORPORATION. Enron‚ a corporation headquartered in Houston‚ operated one of the largest natural gas transmission networks in North America‚ totaling over 36‚000 miles‚ in addition to being the largest
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George Zimbardo—psychologist and professor at Stanford University conducted prison experiment to test the effect of situations. In contrast with prediction as lengthy and boring‚ the experiment’s result shocked the world. The Stanford Prison Experiment (SPE) has indicated the significant power of roles‚ or situations‚ on human behaviors; thus‚ brings about many influences on society. According to Zimbardo in “ Obedience to Authority‚” he asked the students during the spring term to reverse role and
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GAAP / IFRS Fiat Group’s first-time adoption of IFRS Differences Between Key Accounting Methods Under Italian GAAP And IFRS What characterizes the differences between the two sets of methods? - Substance over form Example: Recognition of revenue - Less flexibility Example: Recognition of R&D cost - More transparent Main factors that affect management’s reporting incentives and strategy in fiscal year 2005 - Research & Development: Because Fiat main operations are based on the manufacturing
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How did the corporate culture of Enron contribute to its Bankruptcy? Once a sound company listed in fortune 500‚ Enron‚ lead to downfall because of deceptive accounting system incorporated within the organization. Enron’s dubicious finance finally collapsed in Dec 2‚ 2001 as it filed Bankruptcy in New York Bankruptcy court. The corporate culture of Enron focused on financial performance neglecting the stakeholder’s value .The relentless emphasis on the importance of the shareholder’s value created
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ABONG Rose AKENJI 13200149 Question 1 Is the Enterprise a VIE as defined in the Codification Master Glossary? If so‚ what criteria cause it to be deemed a VIE? Assume that (1) the Enterprise does not qualify for any scope exceptions and (2) the equity investment by the Nominee Shareholders in the Enterprise represents equity investment at risk. The enterprise is a VIE as defined in the codification of the master glossary. From the narrative‚ nominee equity holders do not absorb the losses of the
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It was the biggest bankruptcy in US history and cost 4‚000 employees their jobs. 1.1 The Reasons for Scandal Top Level Management & Board of Directors – Enron Bent the Accounting rules to satisfy their own desires to earn short term profit SPE Laws Accounting Laws The Immoral and unethical actions taken to achieve personal profits Violated Top Level Management & Board of Directors –
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exercise prudent judgment‚ failed to challenge management when necessary‚ and‚ as a result‚ failed to adequately protect the interests of the shareholders. 9. Identify the conflict of interest in: SPE activities‚ Arthur Andersen’s activities‚ and Executive activities. The conflict with the SPE was that Enron was keeping their losses off of the end of year reports to offset other dealings that were not profitable. If true numbers had been reported losses would have been seen and not covered
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Learning Outcomes and Assessment Feedback Name of the Assessor Learning Outcomes Assessment Criteria (AC) Assessor Feedback LO 1 Understand the relationship between strategic management and leadership 1.1 Explain the link between strategic management and leadership 1.2 Analyze the impact of management and leadership styles on strategic decisions 1.3 Evaluate how leadership styles can be adapted to different situations LO 2
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