An environmentalist stated, following the BP Prudhoe Bay pipe problems, "These companies simply cannot behave responsibly," and went on to voice objection to opening up ANWR for drilling. Discuss the long-term implications of BP's decision to keep maintenance costs low
The students should discuss that companies have to make decisions based on numbers and risk before them. However, how does one quantify the loss of the ability to drill in ANWR? Also, it's difficult to see that connection that is so non-quantifiable. Companies fail to consider long-term and safety issue costs when there is an accident – there was also the effect on BP's stock price as a result.
You might also like to view...
Corcoran, Inc.'s common stock trades on the New York Stock Exchange. The past year was disappointing for Corcoran. Cash flow, operating income, and net income were all significantly lower than in previous years. While discussing the financial results, Barbara Freeburg, an outside member of the board of directors, learned that Corcoran's management recorded large, one-time expenses in the last quarter of the year that related to warranty, bad-debt, environmental, and other liabilities. Management provided adequate support for the large increase in the liabilities, but Freeburg, believing liabilities were materially overstated, disagreed and resigned from the board. The large expenses recorded by Corcoran in the last quarter will most likely be reported on
A. Form 10-Q for the fourth quarter. B. Form 10-K. C. Form 10-Q for the first quarter of next year. D. The next Form S-1.
Conformance quality addresses whether the product was made or the service performed to specifications
Indicate whether the statement is true or false.