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Rainbow [258]
3 years ago
12

Absent government regulations to guard against​ fraud, why might top managers deceive investors about the true financial condi

tion of their​ firms?Top managers might want to deceive investors about the true financial condition of their firms​ _____a. to hide liabilities that should be listed on the balance sheet to keep the firm's stock price upb. to inflate profits to enhance compensation tied to the firms profitablityc.to reduce cost of expensive external auditsd. both a and b​e. all of the above
Business
2 answers:
Colt1911 [192]3 years ago
6 0

Answer:

D) both a and b

  • a. to hide liabilities that should be listed on the balance sheet to keep the firm's stock price up
  • b. to inflate profits to enhance compensation tied to the firms profitability

Explanation:

Top management has a fiduciary duty with the corporation and its shareholders, but that doesn't mean that they will always follow their duties and even obey the law (e.g. Enron). Two of the main reasons why top management may try to deceive both regulating agencies and shareholders is to artificially keep the stock prices up, and as a result of this they will generally earn huge bonuses and other compensation tied to both the corporation's profitability and stock price.

To be honest the main reason is the second one (earn huge bonuses), but without the first one it is impossible to achieve their goal.

Inessa [10]3 years ago
5 0

Answer:

The correct answer to why top managers might want to deceive investors about the true financial condition of their firm is option E) all of the above

Explanation:

The aim of management is to ensure that the company is profitable in order to increase its value and investment worthiness.

However, sometimes, they fall short due to internal and external factors that reduce profitability and increase liabilities. When this occur, the account books will show the unfavorable numbers. A deficit situation reflects negatively on the stock price and when shareholders are not getting a good return on their investment, they usually liquidate their shares and invest elsewhere.

To avoid that from happening, Top Managers usually hide liabilities that should be listed on the balance sheet to keep the firm's stock price up, inflate profits to enhance compensation tied to the firms profitability to reduce cost of expensive external audits.

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liq [111]

Answer:

1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.

2. a. The number of customers leaving per day / week to competitors due to inefficiency.

b. Total average delay in customer's order.

c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.

3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.

4 0
3 years ago
Glenn sells a piece of equipment used in his business for $31,500 during 2019. The equipment was purchased on July 1, 2017, at a
Schach [20]

Answer:

A gain of $16,100

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.

The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.

Carrying amount

= $22,000 - $6,600

= $15,400

Gain/(loss) on sale of asset

= $31,500 - $15,400

= $16,100

6 0
4 years ago
Which of the following statements is true? a. A college degree does not influence the earnings of workers. b. The median pay of
ICE Princess25 [194]

Answer:

b. The median pay of economics majors increased more in dollar terms than any other majors in 2015.

Explanation:

As it can be seen from the various sources that tha major in economics represents the largest per dollar rise for all major in the year 2015

Due to which it brings down the requirement for more economists also the word economics is not certain. Also, for the entry level jobs in the economics field, the minimum qualification should be masters

Therefore according to the given case, the option B is correct

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xxMikexx [17]
<span>i would say a Device Driver Scan and Update</span>
8 0
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Back-office operations deal directly with the customer. true false
CaHeK987 [17]
The answer to this question is False.
8 0
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