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AC504 Unit 1 Assignments 1,2, & 3


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AC504 Unit 1 Assignments 1,2, & 3

ASSIGNMENT 1 OF 3 (The Powder Baby Milk Case)


1)    Given strong profit growth, has there been any damage to’s reputation?

2) What would future reputational damage affect, and how could it be measured?

3)    What steps could take to restore its reputation, and what challenges will it have to overcome?

5)    In some cultures, a “culture of secrecy” or manipulation of the news is tolerated more than others. How can this be remedied by other governments, corporations, investors, and members of the public?

ASSIGNMENT 2 OF 3 (The WorldCom Catalyst Case)


Describe the mechanisms that WorldCom’s management used to transfer profit from other time-periods to inflate the current period. 

Why did Arthur Andersen go along with each of these mechanisms? 

How should WorldCom’s board of directors have prevented the manipulations that management used?

Bernie Ebbers was not an accountant, so he needed the cooperation of accountants to make his manipulations work. Why did World Com’s accountants go along?

Why would a board of directors approve its Chair and CEO loans of over $408 million?

How can a board ensure that whistle-blowers will come forward to tell them about questionable activities? 

ASSIGNMENT 3 OF 3 (Article Research)


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