Question

In: Operations Management

In a Duke University survey of 400 corporate financial executives, two out of five said they...

In a Duke University survey of 400 corporate financial executives, two out of five said they would use legal ways to book revenues early if that would help them meet earnings targets. More than one in five would adjust certain estimates or sell investments to book higher income. Comment on the ethics of both of these statements by the financial executives in the Duke survey. at least 300 words

Solutions

Expert Solution

The first option wherein the financial executives express their intertest to book revenues early is completely valid in case of certain businesses and industries. Moreover, they have expressed their interests well within the legal purview and they have said that they would keep their revenue bookings as per the legal procedure. Therefore, there is no question of ethical misdemeanor in this respect.

The second proposition about adjusting estimates or selling investments to book higher income would be misguiding the present investors or prospective investors. Selling of investments or adjusting the estimates is simply an accounting tool which does not reflect the business value created by the operations of a company. It also does not provide any direction with repsect to the future prospects of the company. Therefore, this proposition can be considered as an ethical crime created by the financial executives of a company.


Related Solutions

In a survey of 155 senior​ executives, 51​% said that the most common job interview mistake...
In a survey of 155 senior​ executives, 51​% said that the most common job interview mistake is to have little or no knowledge of the company. Use a 0.01 significance level to test the claim that in the population of all senior​executives, 40​% say that the most common job interview mistake is to have little or no knowledge of the company. Identify the null​ hypothesis, alternative​ hypothesis, test​ statistic, P-value, conclusion about the null​ hypothesis, and final conclusion that addresses...
Out of a survey of 20 people 3 people said they do not like the taste...
Out of a survey of 20 people 3 people said they do not like the taste of cinnamon and 17 people said they liked the taste. For this sample, complete the following: a. Calculate the proportion who answered “yes” and the proportion who answered “no.” b. Calculate the 95% Confidence Interval for the proportion who answered “yes.” c. Using your survey results, test your hypothesis. Show work for all steps including the formulas. Calculate the p-value for the test. Use...
In a survey, 668 out of 1112 people said they support Medicare for all. Find the...
In a survey, 668 out of 1112 people said they support Medicare for all. Find the rule of thumb 95% confidence interval estimate of the true proportion of supporters.
A survey revealed that 128 people out of 400 interviewed in a city where the product...
A survey revealed that 128 people out of 400 interviewed in a city where the product was widely advertised used a household product, but 115 out of 390 used it in a city where there was no advertising. Determine whether or not advertising is effective at the .05 level.
In a survey, 1,858 out of 2600 voters said they expected declining economic conditions to continue...
In a survey, 1,858 out of 2600 voters said they expected declining economic conditions to continue for the next 12 months. This is a measure of consumer confidence. Construct a 99 percent confidence interval for the proportion of respondents who believe there will be "hard (declining) times" in the next 12 months. Consumer confidence is an indicator for economic expansion and growth. What do these findings indicate for economic growth?
In a survey, 2,100 out of 2700 voters said they expected declining economic conditions to continue...
In a survey, 2,100 out of 2700 voters said they expected declining economic conditions to continue for the next 12 months. This is a measure of consumer confidence. a) Construct a 98 percent confidence interval for the proportion of respondents who believe there will be "hard (declining) times" in the next 12 months. b) Consumer confidence is an indicator for economic expansion and growth. What do these findings indicate for economic growth?
20. In a survey, three out of four students said that courts show too much concern...
20. In a survey, three out of four students said that courts show too much concern for criminals. Of seventy randomly selected students Would 68 be considered an unusually high number of students who feel that courts are partial to criminals? A. The correct answer is not among the choices. B. Yes, because P(X ≥ 68) ≤ .05 C. Yes, because P(X ≤ 68) ≤ .05 D. No,because P(X≥68)≤.05 E. No,because P(X≤68)≤.05 21. In a survey, three out of four...
In a recent statistics survey, 37 out of 129 randomly sampled college students said they get...
In a recent statistics survey, 37 out of 129 randomly sampled college students said they get enough sleep. Penn State conducted a much larger scale study a few years ago and found that 40% of college students got enough sleep. Is the lower percentage among college students in the recent study due to chance or is it signifcantly lower than the Penn State study? Determine the alpha level for this study.
In a survey of 1118 U.S. adults conducted by the Financial Industry Regulatory Authority, 415 said...
In a survey of 1118 U.S. adults conducted by the Financial Industry Regulatory Authority, 415 said they always pay their credit cards in full each month. a) Construct a 95% interval for the population proportion of U.S. adults who pay their credit cards in full each month. To show work, write out the following: - The given numbers with their corresponding variables. - The formula that's used to calculate the confidence interval. Also give a short explanation stating why you...
A corporate treasurer is contemplating buying a five-month down-and-out put option on the Australian dollar with...
A corporate treasurer is contemplating buying a five-month down-and-out put option on the Australian dollar with an exercise price equal to the current spot rate of the Australian dollar of USD0.7200 and a barrier at USD0.6000. Her treasury analyst estimates that the Australian dollar will either rise or fall by 5% during each one- month period. The term structure is flat in both Australia and the US, with risk free rates of 1.5% and 0.5% p.a. respectively, continuously compounded. (a)...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT