¶ … Creative accounting" may be considered a very old technique which has conserved its appeal over the ages. However, using such methods could prove costly. The motivation behind techniques of this type varies: sometimes, executive and financial officers, accountants or auditors have a lot to gain by presenting false data to the interested parties. The victim may be the state, which collects less income taxes, creditors, who are not aware of the real situation of the company they have lent money to, clients, who continue to do business with an organization that could go bankrupt at any time and so on.
In other cases, the terrible pressure to which businesses are subjected by the fact that investors and resources are scarce, induces their managers to use deceptive or even fraudulent accounting practices. Usage of such methods often leads to drastic consequences, both from a legal and an economical point-of-view. Although these practices are not always illegal, they certainly cannot be justified by the people who employ them. The Enron disaster made investors aware of the role of fraudulent accounting in creating an aura of financial healthiness around a company, while the real situation is radically different.
The government has proposed some measures to fight against such practices, in order to heal the wounded psyches of creditors and investors. President Bush held a speech in which he called for a "new ethic of corporate responsibility." However, an ethical code has to be enforced, so adequate sanctions have to be provided for. Investor confidence is practically the backbone of the American economy. No one invests in a company one does not trust. Since the number of open-type companies is higher every day and since the most important stock market in the world -- the NYSE -- acts as an intermediary between investors and companies which seem to have a habit of constantly changing something in the management boards, strict accounting and reporting rules have to be applied in order to maintain the interest of the investors in the economy.
Financial safety cannot be achieved unless discipline and...
Leadership: Decision-Making Biases and Pitfalls Case PaperGlobalization and profuse technological infusion have created complexities in the business environment that have posed a major challenge for business managers. Decision-making has become intricate due to the transformation of processes and operations and the market�s uncertainties, competition, external forces, and target market preferences (Acciarini et al., 2020). This paper discusses some of the commonly known decision-making or cognitive biases relevant to the given
Problem-solving and Decision-Making in Nursing and Explain How Clinical Judgments Are Outcomes of Critical Thinking in Nursing The American Philosophical Association (APA) has "defined critical thinking as purposeful, self-regulatory judgment that uses cognitive tools such as interpretation, analysis, evaluation, inference, and explanation of the evidential, conceptual, methodological, criteriological, or contextual considerations on which judgment is based" (Benner 1). In a nursing-specific context, nurses must be engaging their critical faculties at
The two scenarios are likely to sway employees to provide false information if they are encouraged. However, the relationship had much strength in the positive. Therefore, in this study, there were clear choices. The participants were required to either tell the truth or lie. If things were easy for individuals in the world, lines of making moral decisions tend to be much fuzzier, however, the bottom line remains the same
Be a good example to him. Demonstrate to him good work habits and if possible show to him the incentives and rewards that I achieved from practicing professionalism at work. The advantage to this is that my fellow co-worker can have motivation at work. The disadvantage on the other hand is that he might have a wrong concept and ask the same incentives and rewards from the management despite of
Decision Making Tool: Cost/Benefit Analysis The decision making tool to be discussed is a cost/benefit analysis. A cost/benefit analysis generally is used within management to generate solutions to problems and help teams decide what course of action is best based on a set of established criteria. The solutions developed as a result of a cost benefit analysis may or may not prove worthwhile; however they do allow management the opportunity to
SWOT analysis is very instrumental at this stage. One can also employ the use of well structured questionnaires so as to achieve broader and a deeper scrutiny of a problem or situation. d). Developing options At this stage one should come up with several probable options to the solution of a problem. Creativity is of essence here since it will help narrow down to the fewer most probable decision options. As
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