Draft - Corporate Governance Considerations This material was prepared by Eliot H. Sherman – July 2005 FOCUS Learning Objectives By the end of this chapter, you should be able to: Understand the issues related to agency and delegated responsibility. Describe the similarities and the differences in the corporate scandals that have been identified in the past few years Identify the responsibilities of managers to the shareholders and other stakeholders associated with their corporations. OVERVIEW
Words: 7269 - Pages: 30
Jack in the Box Unethical Accounting Business The article I have chosen to summarize highlights the accounting practices of a San Diego--based company, Jack in the Box, Inc. (NYSE: JBX). In addition to summarizing the article, I will discuss how the concepts of the article relate to my organization The Platinum Company Inc., including, making recommendations for improvement for my organization based on the article. Lastly, explain the importance of ethics in accounting and financial decision
Words: 748 - Pages: 3
Corporate governance heavily refers to the whole structure of rights, processes and controls established internally and externally over the management of a business entity with the objective of protecting the interests of its stakeholders from any type of loses incurring. To begin with, firstly there are three types of auditors in the corporate governances, internal, external and government auditors. The role of the internal auditors in the corporate governance is to evaluates corporate activities
Words: 2531 - Pages: 11
service markets. In 1997, the global long-distance company World-Com Inc. made a $30-billion bid to buy MCI. GTE made a $28 billion offer. After some negotiation, MCI agreed to a $37-billion purchase by WorldCom. The merger was announced November 10, 1997 and the new company will be named MCI WorldCom. COMPANY FINANCES Upon announcing the merger of MCI and World-Com Inc., the combined firms projected over $30 billion in revenues for 1998. In 1997 MCI had net income of $209 million on revenue of
Words: 2340 - Pages: 10
the Downfall of WorldCom The story surrounding the failure of WorldCom in the early 2000's is one that still haunts the financial market to this day. We often hear accounts of what happened within the telecom giant, but only one person could give a first-hand account of what she observed being the on the frontline and discovering one of the nation's biggest financial scandals of the last quarter century. Cynthia Cooper's account of her internal audit experience within WorldCom paints a bigger
Words: 797 - Pages: 4
importance of Ethics in Accounting…….……………………………………………………………………..6 Creative Accounting…………………………………………………………………………….…7 Accounting Scandals..……………………………………………………………………………………………………10 The Enron Scandal……………………………………………………………………………………..10 The WorldCom Scandal………………………………………………………………….…………..12The consequences of Creative Accounting……………………..…………………………………13Measures of Prevention……………………………………………………………………………………15Conclusion……………………………………………………………………….…………………..17Bibliography……………………………………………………………
Words: 6769 - Pages: 28
standards and goals for themselves and their employees. Critique From a logical standpoint the author discusses business ethics and the ethics at WorldCom. The author presents many facts within the article form an unbiased view and I agree that WorldCom did not take any responsibility for incorporating any of the basic ethical principles; WorldCom leaders ignored any opportunity to do what was morally good and morally right. The author expands on the importance of a code of ethics and culture
Words: 384 - Pages: 2
Abstract Trust between employees and management within an organization directly affects the organization’s ability to perform the function for which it was created. In addition trust directly affects the well being of employees as well as their ability to perform their tasks. Recent historical events suggest that trust between employees and management has been negatively affected however, with the enactment of new laws and ethics policies has there been a strengthening of this trust relationship
Words: 5125 - Pages: 21
introduced to accounting students on their first introduction to accounting classes and it is also mentioned on the major headline news such as the Enron and WorldCom financial fraud cases. This term, although its main audience is people in the accounting field, has become very effective due to the major financial fraud cases such as Enron, WorldCom, Bernard Madoff and others. The main audience for this term are individuals who are related to the accounting field. Learning that an organization has
Words: 523 - Pages: 3
Assignment I: Tainted Baby Powder Milk 1. Yes, I believe there has been some damage to Baidu.com’s reputation because there was a significant stock price drop from $308 to $110. Stock price drops usually are the result of a lack of confidence by the stakeholders in the future performance of the company. Lack of confidence can often be attributed to actions by a company that are revealed to the stakeholders. 2. Future reputational damage could be reflected by a lack of confidence of the stakeholders
Words: 1339 - Pages: 6
