Question

You are the manager of an assisted living home. You have worked for this company for the last ten years. New ownership took over two years ago and business revenue has not kept up the increased costs. The home can't afford to pay both payroll and bills to vendors. The owner calls you to confide that the business is out of money and he is looking for a new buyer. The owner says you have to keep the homes going and keep the elderly people taken care of at all costs.

The owner thinks the only way to make home be able to keep patients for at least the next few months is to cut payroll by terminating employees. And then to make up for the shortage of care-taking employees, hire aides and nurses from temp agencies.

The owner lets you know he has no intention of paying the temp agencies (he intends to file both personal and corporate bankruptcy after the closing).

He informs you it is your responsibility to keep the place going. He says as the temp agencies bills become past due and they refuse to offer any more help, keep finding other temp agencies and string them along without paying them for as long as you can and then move on to another and another.

This way the elderly residents of the home who rely on this place to live can stay there until the closing and takeover of hopefully another company. As you hang up the phone after this startling phone call from your boss (the owner) you think this may require some serious analysis.

Your assignment is to analyze this dilemma using the method that we have built upon all term and submit it in the appropriate drop box within the due date parameters.

It is important you are aware of the laws that will affect your actions including the Sarbanes-Oxley Act and the Foreign Corrupt Practices Act (FCPA) not just for this assignment, but as you move forward in your career.

Answer 1

I am the manager of an assisted living home. I have been working in this company for the last 10 years. Now this company has been taken over by new ownerships from the last two years ago and the revenue has not been kept up the increase cost. Now the living home can't afford to pay both payroll to employees and to bills to vendors,   who are offering there services to them. The owner calls me to  confide the business is out of money and they are looking for new buyers who can buy there business. As they are running in loss. The owner things that only way to make home to be able to keep patience for at least the next few months is to cut payroll by terminating employees. The owners let me know there intentions that they have no intention of paying temp agencies.

He informs me that it's my responsibility to keep the place going. He also said as the temp Agencies bills became past due and refused of any more help.

Now my owner wants me to contact other temp agencies and string them along without paying them for as long as we can and then move on to another and another. Show that in the meantime they find a new buyer of there business.

After listening to all the conversation of my owner I was shocked as this action is against the law. According to Sarbanes oxley act of 2002 which is a federal law that established sweeping auditing and financial regulator for public companies lawmakers created that legislation to help protect shareholders employee and the public from accounting errors and fraudulent financial practices. And also according to foreign corrupt practices act (FCPA) attributes us firms and individuals from paying bribes to foreign officials in a business deal. And in this case my owners want me to find temp agencies and ask them for their services. When their services are over fine and other temp Agencies so that they can offer their services. But not paying any of them as the business is in loss. So it's a case of fraud as we are taking their services and not paying them. As the bills are not clear. Of the agencies they will catch my collar instead of owners collar as they came to give there services on my call.