Glass-steagall act and sarbanes-oxley act

Assignment Help Operation Management
Reference no: EM132241342

The WorldCom case study addresses issues such as ethical considerations, marketing puffery, the Glass-Steagall Act and the Sarbanes-Oxley Act. Please review the case study and address the questions presented. Please research the Glass-Steagall Act and the Sarbanes-Oxley Act in order to address how these laws contributed to the WorldCom issue or to subsequent creation of additional Accounting Oversight.

Using the Ethical Dilemma theories discussed in Chapter 2 and throughout the Jennings book, please address the following questions:

1. What are the ethical considerations involved in a company's decision to loan executives money to cover margin calls on their purchase of shares of company stock?

2. When well conceived and executed properly, a growth-through-acquisition strategy is an accepted method to grow a business. What went wrong at WorldCom? Is there a need to put in place protections to insure stakeholders benefit from this strategy? If so, what form should these protections take?

3. What are the ethical pros and cons of a banking firm giving their special clients privileged standing in "hot" IPO auctions? How does ethics differ from law?

4. Jack Grubman apparently lied in his official biography at Salomon Smith Barney. Isn't this simply part of the necessary role of marketing yourself? Is it useful to distinguish between "lying" and merely "fudging."?

5. Cynthia Cooper and her colleagues worried about their revelations bringing down the company. Her boss, Scott Sullivan, asked her to delay reporting her findings for one quarter. She and her team did not know for certain whether this additional time period might have given Sullivan time to "save the company" from bankruptcy. Assume that you were a member of Cooper's team and role-play this decision-making situation.

6. How did the repeal of the Glass-Steagall Act in 1999 contribute to ethical issues with WorldCom or to other financial institutions (especially during the housing-bubble during the mid-2000’s)? Please research this Act and its implications.

7. What is the Sarbanes-Oxley Act? How did the financial discrepancy issues of WorldCom and Enron contribute to the need and creation of this law? What are the new mandates that the Act has created for publically traded corporations. What is PCOAB and how does it relate to the law?

Reference no: EM132241342

Questions Cloud

Optimal number of hypodermic needles to obtain per order : Would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order.
Restoring customer service in fabrication and assembly plant : Moog, Inc., began more than 50 years ago as a designer and supplier of aircraft and missile components.
Advantage of significant educational opportunity : Describe how you have taken advantage of a significant educational opportunity or worked to overcome an educational barrier you have faced.
What was the missing link in your data set : What was the “missing link” in your data set? How did you identify a valid source to obtain this missing data?
Glass-steagall act and sarbanes-oxley act : The WorldCom case study addresses issues such as ethical considerations, marketing puffery, the Glass-Steagall Act and the Sarbanes-Oxley Act.
Opportunities in their current work environment : Develop marketing program related to marketing problems and opportunities in their current work environment.
Define the basic functions of marketing : Define the basic functions of marketing and apply that knowledge to a current business situation (current work environment).
Does your creativity relate to your major or future career : How does your creativity influence your decisions inside or outside the classroom? Does your creativity relate to your major or a future career?
Four factors for establishing relationship with retailers : Briefly explain the four factors for establishing a relationship with retailers (i) choosing retailing partners (ii) identifying types of retailers

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd