Enron had many legitimate sources of income like natural gas, etc. But as they started to lose money in various areas, some of the stock was later made up and billions of dollars were non-existent! I believe that reasons for Enron on keeping the fraud going for an extensive time is that because there were no strict rules and because of deregulation of buying and selling of the company’s wealth. Ken Lay created multiple non-existing companies of partnership and hid the truth of where the money was. People thought these very companies were worth a fortune but because they were completely made up, they didn't have any value!
Contractors have often over-bid the price on projects. It is believed that contractors should unbalance the bid/front-end load of the project even though they collect money in a timely manner. If a contractor, particularly a subcontractor, doesn't unbalance the bid, the difference in cash disbursed against cash received on a project can be enormous, and no one would notice, because most accounting systems do not detect it,” he says. “When examining the job, you will find that you are funding labor and other costs but you're not being paid in
1. I believe that Charles Tollison was not qualified for the partnership position even with his knowledge and ethics. Tollison had many things going for him, in the case it states that people would turn to him if they were threatened with a difficult situation. Along with being the “go-to” person, Tollison has put in the hours for the firm while making sacrifices in his personal life. The main reason that he probably got passed over for the promotion because at the end of the day his client list could not compare to those of his colleagues.
Bellamy saw the select few who were wealthy as abusers of their power and money. He always portrays them as heartless. Another problem Bellamy describes are the selfishly motivated people of his century. Not only did he find the wealthy to be selfish, he felt that the hard working lower class was working for the wrong reasons. He explains to the utopian world that where he came from people were motivated to work only because of fear of poverty, as opposed to bettering their community or pursuing their passions.
The implications of the damage his wife’s actions could cause him are very real and have very far-reaching consequences. As a man who is in charge of handling the finances of a great many people, Torvald is looked upon to be not only virtuous in his acts, but completely honest and law-abiding in all business transactions. For his wife to be accused of fraud would not only deal irreparable damage to his reputation in social circles, it would brand him untrustworthy in business circles and effectively ruin his livelihood. Torvald shows little sympathy to the reasons for Nora’s crimes and jumps to several unrealistic conclusions during his rant that shows a real lack of understanding or even love to the wife he has pledged himself to for the last eight years. Torvald states “Nobody sacrifices his honor for the one he loves.” While he apologizes repeatedly for the words said during the beginning of the scene, the damage had already been done and had destroyed his wife’s illusion of the man she believed she had married.
Meanwhile, although the community bank has a lot of customers who are the families and small companies bring great revenue, the risk of non-accrual loan increased, which is harmful to the whole company because its revenue account for 71% of Wells Fargo. Comparing with its competitor – Chase bank, which is also use the diversification strategy, but its revenue is divided among several different sectors, which means decrease the risk in each sectors. Therefore, Wells Fargo should not much rely on its community bank like before. Recommendations In my opinion, first, Wells Fargo should set out several key products in each segment of the community bank instead of just to develop the new product blindly, such as in the investing services segment, Wells Fargo can focus on the aging population and diverse population. Second, Wells Fargo should increase the market share of wholesale banking.
Fraud There are many reasons that someone would commit fraud and only those people will ever know what pushed them to do so. The three main factors that contribute to fraud are opportunity, financial pressure, and rationalization. If the workplace does not have proper controls in place to deter people from wanting to commit fraud, it makes it easier to do so. The financial pressure portion of this can sometime be fueled by nothing more than greed. Mostly this occurs because an employee has financial issues and believes that the company would not miss even a little bit of money.
People were given the ability to live above their means. Assisting those with debt, bad credit or jobs that don’t pay much to survive is noble; the reasons for handing out these loans and the greed that took over made it completely unethical. There were many ethical issues that contributed to the downfall of Countrywide Financial. People were enticed into the real estate market but were not equipped financially to persevere. Subprime borrowers also were generally uneducated on loan borrowing and inexperienced.
Kmart is guilty of many “Deadly Sins” and how they operated their company. Case Questions Kmart is guilty of brand mismanagement a brand is a promise that a company makes to consumers to deliver a particular product or service at a certain level of quality. A brand has to constantly reinvent itself to keep up with changes in the market and changes in consumer tastes. A business cannot stand still, and not adapt to change which is what Kmart did. Kmart failed to pay attention to trends and the customers.
The case of Bernard L. Madoff will remain etched in the memory of investors and traders for the unparalleled example of Ponzi scheme that it set and as the most financially devastating crime. Bernard Madoff; also known as Bernie Madoff, was involved in 'Ponzi Scheme' which is predominantly a financial scam. Ponzi scheme is characterized by investment operations where returns are paid to the investors by their own money or from that of other investors. Earnings are usually low because so as to entice investors, higher returns are used thereby inducing lower income for the owner. This lower income prompts the owner into paying returns to investors from other investors' money rather than the profit.