What about financial statements of privately held firms? Does fraud occur in these firms
What will be an ideal response?
The simple answer is that fraud can occur in any organization in which individuals have access to money or are responsible for financial transactions. It is true that privately held firms do not require external auditors for certification of their financial statements since they are not publicly traded companies. However, even though they are privately held, it does not mean that the firm does not have many stakeholders. As a result, from a stakeholder perspective, it should not matter whether the firm is publicly traded or privately held. It is the responsibility of the top mangers to present accurate, transparent financial information to those who have a vested interest in their operations.
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Benz & Frendz Corp, a manufacturer of high end consumer durables, experienced sluggish sales growth in most of its product categories during three consecutive quarters of 2009
However, market analysis revealed that its competitors' sales had also slackened during this period. Analysts pointed out that when all firms are losing sales, it is extremely important to adopt strategies that are aimed at retaining customers. This led the firm to reduce operation costs while maintaining product quality. They also revamped their marketing strategy to focus on the values created by their products. Which of the following can be inferred from the strategies adopted by the firm? A) The company was trying to protect its market share and continue to operate as a market leader. B) The company was focusing on geographical expansion. C) The company was aiming to capture a new market segment. D) The company was marketing its products amidst an economic downturn. E) The company was focusing on market penetration.
In 1957, the Supreme Court ruled that an employer may
a. refuse to arbitrate unresolved grievance disputes when the contract contains an arbitration provision. b. not refuse to arbitrate unresolved grievance disputes when the labor agreement contains an arbitration provision. c. refuse to arbitrate cases involving civil rights questions. d. avoid arbitration under Taft-Hartley.