Chapter 9, Problem 6QAP

Please help me answer this one! Read the given case study and answer the following questions.: In April 2013, more than one thousand factory workers died when the eight-story Plaza building in Dhaka Bangladesh, collapsed. Investigation revealed that the building was home to a handful of factories that manufactured foreign clothing brands. Why only a few of the companies, have put money towards compensating the victims and their families, half the brands associated with the collapse, such as Benetton, Carrefour, and JCPenney, have yet to shell out money to assist those injured or the families who have lost a loved one. GUIDE QUESTIONS: 1. What would you suggest in order eliminate these work-related tragedies? 2. Would you continue to support the brands that have been mentioned as violators of human rights?

A situation where a respected individual’s reputation was tarnished by personal decisions is the resignation of David Petraeus, former U.S. military general and head of the Central Intelligence Agency (CIA). On November 9, 2012, Petraeus resigned from the CIA after it was announced he had an extramarital affair with a biographer, Paula Broadwell, who wrote a glowing book about his life. Petraeus acknowledged that he exercised poor judgment by engaging in the affair. When Federal Bureau of Investigation (FBI) agents investigated the matter because of concerns there may have been security leaks, they discovered a substantial number of classified documents on her computer. Broadwell told investigators that she ended up with the secret military documents after taking them from a government building. No security leaks had been found. In accepting Petraeus’s resignation, President Obama praised Petraeus’s leadership during the Iraq and Afghanistan wars and said: “By any measure, through his…

Boxes-and-Stuff, a box-packing and mailing company in a small town along the Gulf Coast, lost a key employee last month when its accounting manager was fired for embezzling company money. Now, the owners of Boxes-and-Stuff, Jerome and Natalia, need to find another accounting manager fast. But as they hurry to fill the position, they don't want to select a dishonest or incompetent employee. They need to be cautious. Fortunately, the police chief found the embezzled funds in a bank account set up by the former employee and authorized the return of the money. This means that Boxes-and-Stuff will not lose the embezzled amount, after all. However, Jerome and Natalia are already thinking of ways to protect their company from other risks. They want to be prepared for risky situations in the future. Questions: 1. Which risks do you think Boxes-and-Stuff might face?

David H. Brooks, a university graduate with an accounting degree and the former CEO of DHBIndustries, Inc., was charged in October 2007 with accounting and securities fraud for failing toreport the company’s inventory at the lower of cost or market. From 2001 to 2005, DHB purchasedlarge quantities of a material called Zylon and used it in making bulletproof vests that were sold tothe U.S. military and local law enforcement agencies. During this same period, DHB learned thatZylon deteriorated rapidly when exposed to light, heat, and body perspiration. DHB knew that oneof its competitors, Second Chance Body Armor, had stopped using Zylon in its vests and, eventually, discontinued its business because customer demand for its Zylon-based vests had evaporated.DHB did not write down its own inventory of Zylon and Zylon-based vests because it had a largecontract to supply the U.S. military with bulletproof vests. In its financial statements for the yearended December 31, 2004, DHB reported…

A junior executive is fed up with the operating policies of his boss. Before leaving the office of his angered superior, the young man suggests that a well-­‐trained monkey could handle the trivia assigned to him. Pausing a moment to consider the import of this closing statement, the boss is seized by the thought that this must have been in the back of her own mind ever since she hired the junior executive. She decides to consider replacing the executive with a bright young baboon. She figures that she couldargue strongly to the board that such “capital deepening” is necessary for the cost-­‐conscious firm. Two days later, a feasibility study is completed, and the following data are presented to the president: •It would cost $12,000 to purchase and train a reasonably alert baboon with a life expectancy of 20 years. •Annual expenses of feeding and housing the baboon would be $4,000. •The junior executive’s annual salary is $7,000 (a potential saving if the baboon is hired). •The baboon…

In 1998 a council-owned factory began selling replacement windows to outside customers for the first time. At the time the factory was making losses and the council needed to make severe budget cuts. The new customers have helped to reduce the losses in 1999 and a return to profits is required in 2000.An order for a special type of window has been received. The factory manufactures this type of window very occasionally and there is some partially completed inventory from last year. The inventory relates to an order from the council that was cancelled to save costs. The special windows are typically 30% complete and some of the material can be used for the new order. The accountant still has detailed records of the work done last year.The accountant has provided the following information for the factory managers.Costs incurred last year on special windows now held in inventoryPVC material = £5,000Labour = £3,000(i) The factory was planning to sell the inventory of special windows to a…