Barry Minkow

With an increase in business, the firm recruited widely. The firm, which had employed 2,000 people in 1982, tripled to 6,000 people by 1987.” Due to excessive focus on generating revenues, one insider put it as, “competing fiefdoms replaced interconnected businesses.” and “Making money was mostly what mattered.”

At an early age, Barry Minkow was introduced to the carpet cleaning industry by his mother who worked part time as a telephone solicitor for a small carpet cleaning company. This insight of the industry allowed Minkow to understand that the carpet cleaning industry was one which had very few barriers to entry, no licensing requirements, and required only a small amount of capital to enter. Also, because of these few barriers to entry, the industry has historically attracted a larger number of faulty startups in comparison to other industries. At 16 years old, Minkow started his carpet cleaning company under the name of ZZZZ Best Company. Right away he had a difficult time with customer

In the last several years, as we have seen some of the major financial conglomerates collapse, when Wall Street carries some negative connotation, investors’ attention turns to the companies who work primarily with Main Street, specifically those folks who create capital and own assets. A lot of these businessess would not strike you as super wealthy, yet it is the small businesses that proved to be the most resilient during the hard economic times.

The intended audience for this piece of writing is struggling entrepreneurs. These employers or owners can belong to either big business or

Armed with the knowledge mentioned above, BDO Seidman should have planned the Leslie Fay audit so that many risk factors were identified prior to the start of the audit. The company had incentives to commit fraud due to other competitors, including highly successful Liz Clairborne. The customer interest in Leslie Fay’s product was declining, which would have created another incentive for management to commit fraud. Despite the factors mentioned above, Leslie Fay continued to show unusual profitability when compared to other companies in the industry at that time. Further, Pomerantz had a reputation for

This paper explores the ZZZZ Best Company which was begun by a 16 year old individual who was able to pull the wool over the eyes of many customers, investors and auditors. This paper will define the difference between review and audit when it comes to financial reports, comments on the procedures provided with regard to the management assertion of occurrence, verification of payments for jobs and how they can lead auditors to improper conclusion, the purpose of predecessor-successor auditor communications, as well as whom needs to initiate the communication and information that needs to be obtained. The paper also addresses the limitations of the confidentiality agreement and how and when

Numerous large businesses that are operating today were once started as small businesses. A new business is established to create a good or service that no other businesses have ever created or simply a product of higher quality than existing products, with the purpose of meeting customers’ needs and earning profits. Due to the technological advances at the present time, starting and operating a new business is less laborious. Nevertheless, would-be entrepreneurs should be familiar with the proper approaches to start their businesses.

The video “Cooking the Books” discussed the ZZZZ Best case of fraud, it tells how and why fraud was perpetrated by Barry Minkow and why it was undetected for so long. According to the video, ZZZZ Best was founded by Barry Minkow in 1982; when he was sixteen years old, it started as a carpet cleaning company. But, due to high competition in the industry, low entry barriers, and bad internal control, this young entrepreneur started to have cash flow problems, thus creating a shortage of working capital. As a result of the financial pressure, he started to commit fraud by creating false accounts receivable and sales, false documents (using photocopies of real

This paper introduces Bernard L. Madoff a fraudster who orchestrated a multi-billion dollar Ponzi scheme. The paper discusses elements that make up a Ponzi scheme and explains what a Ponzi scheme is. The paper goes on to introduce some of the victim’s and examines some reasons why someone might fall victim to a Ponzi scheme. The paper describes the three elements making up the fraud triangle and how they relate to the fraud and the fraudster. This paper covers Bernard Madoff’s background and history and how he committed the fraud analyzing the fraud triangle. The paper describes ways to correct the issue, accounting principles violated, and recommendations for a fix. Finally, the paper looks at internal and external controls violated and ends with a conclusion.

Three sisters, Kathy, Linda and Valerie Montgomery started out with what looks like a hobby, without knowing it would develop into a legitimate business of today. These three sisters had adopted an unconventional approach to the growth of their business start-up, by buying materials at a bargained price and producing them into shirts. This approach produced enough revenue growth (on a small scale) but depended largely on loans to finance their business; but with the increase in the firm’s employee and bad economy, they were faced with series of financial problems which resulted into changing their approach to business, by re-organizing the method being used to carry out the business. The company was

Starting a business is the latest trend. Just take a look at Instagram. Several profiles have the caption ‘Entrepreneur’. At this very moment, there is someone, somewhere working on an idea, a business plan or launching a startup. Entrepreneurship is on the rise like never before. The flexibility and independence that comes with being one’s own boss is attractive and worth taking the leap in starting a business. However, most people don’t know that being an entrepreneur is a grueling journey that can be very lonely and stressful at times. According to the Small Business Administration (SBA), 50% of businesses fail during the first year. Starting a business can be a scary task, but the

This study is set to discuss the case of Comfort Homes from chapter 7 of Mazzarol (2011) book which focused on planning and strategy in entrepreneurial venture. The case study analysis will address the questions and demonstrating of concepts taught in the unit to the case as a business solution or lessons. James, the owner manager of Comfort Homes, turned his business into a multi-million dollar success story. Although by time, it was not enough for him as he faced bigger managerial problems. Planning, segmentation, and leadership are some of the difficulties James are facing.

Under financial pressure, Minkow started to commit fraud. He forged credit card applications, staged theft, used bogus financial statements, and used his networking skills to entice wealthy investors. The most serious fraud he made was inflating the value of the company’s insurance restoration contracts (Knapp, 2006).

Case 5, page 575, “Essentials of Entrepreneurship and Small Business Management” Peter Pap Oriental Rugs

A small business with no revenue, no track record and no sales screams high-risk. Luckily, there are other pockets to pick to help your small business get the financing it needs to grow and thrive .In these essay want to explain about other potential sources of financing for Jacqui LLC . And I explain about the advantages and disadvantages of using equity capital and debt capital to finance a small business's growth. And I give for Jacqui Rosshandler to investment offer from Arthur Shorin.