StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Accounting Malpractices of Sunbeam - Essay Example

Cite this document
Summary
In the paper “The Accounting Malpractices of Sunbeam” the author analyzes how pressures for financial performance contributed to sunbeam's culture where quarterly sales were manipulated to influence investors. Sunbeam Corporation’s senior management played out a hoax to increase its share prices…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.6% of users find it useful
The Accounting Malpractices of Sunbeam
Read Text Preview

Extract of sample "The Accounting Malpractices of Sunbeam"

At Sunbeam, he attempted the same strategy and did nothing creative about it. In order to cut short the time frame to correct the company's book, he resorted to sales and accounting frauds and the debt financing of three acquisitions to increase the turnover and asset base of the firm. The celebrity CEO was also followed closely by the media who was highly skeptical of his style of aggressive and inhuman decisions. The over-ambitious CEO was overpowered by the media who alerted the shareholders and the authorities about his way of functioning and the glorification of the company destined to doom.

The senior management of the company also did little to control the massive information leakage once the media opened the lid of the mismanagement can. The CEO had cut over half of Sunbeam's jobs soon after he took over. The share price shot up to over US$ 53 in 1997 from a mere US$ 12. Many shareholders had already sold their stake in the company. But growing public concern led to the CEO himself being victimized in the end. The board of directors fired Duncan to save their embarrassment and filed for closure. 3. Identify ethical issues that Dunlap's management team may have created by adopting a short-run focus on financial performance.

What lessons could be learned from the outcomeDunlap's management team had overlooked the primary aim of all businesses - to create social wealth. He had specialized in the short run concept after he discovered the pleasure of making money by selling off his previous firms to high bidders who bought the revived companies to add to their wealth. But in the process of streamlining a sinking firm, he had thrown overboard a large chunk of its employees and the beneficiaries of its functioning. 

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Accounting Malpractices of Sunbeam Essay Example | Topics and Well Written Essays - 750 words, n.d.)
The Accounting Malpractices of Sunbeam Essay Example | Topics and Well Written Essays - 750 words. https://studentshare.org/business/1523698-dunlaps-aim-for-ailing-companies
(The Accounting Malpractices of Sunbeam Essay Example | Topics and Well Written Essays - 750 Words)
The Accounting Malpractices of Sunbeam Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/business/1523698-dunlaps-aim-for-ailing-companies.
“The Accounting Malpractices of Sunbeam Essay Example | Topics and Well Written Essays - 750 Words”. https://studentshare.org/business/1523698-dunlaps-aim-for-ailing-companies.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Accounting Malpractices of Sunbeam

The Enron Scandal: The Failure of Arthur Anderson and Its Impact on the Accounting Policy

… The Enron Scandal: The Failure of Arthur Anderson and Its Impact on the accounting Policy Abstract The project is related to the misrepresentation of financial statements of Enron by Arthur Andersen.... The auditing policies are also demonstrated to be revised and modified with the intention of mitigating malpractices while preparing financial statements of companies.... Arthur Andersen LLP was a consulting firm providing accounting, tax and audit services to the large corporate sector which is operating in the United States....
26 Pages (6500 words) Dissertation

Medical Malpractices Lawsuits and Their Changing Nature

Medical malpractices Lawsuits and Their Changing Nature Instructor Outline THESIS: The law on medical malpractice has been changing for a long time ever since the Common English Law.... Conclusion and further suggestions for reforms in medical malpractice law Medical malpractices and Their Changing Nature The law on medical malpractices and insurance has been under scrutiny and focus for many years across the United States and over the world....
11 Pages (2750 words) Essay

The Turnaround at Sunbeam

Al Dunlap's four-step plan impacting financial, personnel, core business, and strategy of sunbeam had elements of controversy.... In the essay “The Turnaround at sunbeam” the author answers the question: How did pressures for financial performance contribute to the decision-making process that tried to manipulate quarterly sales and to influence investors?... The turnaround at sunbeam could not maintain momentum.... hellip; The author states that the three purchases of Coleman from Ronald Perelman, Signature Brands, and First Alert made by sunbeam initially pushed share prices up....
1 Pages (250 words) Case Study

Andersen LLP: Questionable Accounting Practices

Arthur Andersen LLP, for most of its active business years, exhibited undeniable integrity in the accounting profession; reduction of useful life of mainframe IBM computers (in 1970) for the purpose of depreciation was an outstanding example, which others had to more or less follow.... sunbeam Corporation filed a voluntary petition in the U.... However, in August 2002, sunbeam came out of Bankruptcy protection.... Andersen paid $110 million to in May 2002, to settle claims of the sunbeam investors....
7 Pages (1750 words) Essay

Al Dunlap at Sunbeam

In the paper “Al Dunlap at sunbeam” the author discusses sunbeam, which was on the verge of bankruptcy, thus Albert.... Known as Rambo in Pinstripes, his specialty was corporate restructuring, and this is exactly what sunbeam needed.... sunbeam went from $53 per share to below $12 per share within three months – even faster than the turnaround.... sunbeam had a capital investment.... He took over three mediocre companies – First Alert, Coleman, and Signature – and then set out to grow sunbeam through the newly procured companies....
2 Pages (500 words) Case Study

Arthur Anderson: Questionable Accounting Practices

These malpractices were mainly informed by conflicts of interest and the absence of independence of auditors when it came to auditing clients' financial transactions and statements.... As one of the most popular and largest accounting organizations in the US, Arthur Andersen had become synonymous with integrity, trust and high ethical standards.... here are accounting requirements and practices that organizations are expected to legally comply with, and these requirements are divided into five categories....
4 Pages (1000 words) Term Paper

Contemporary issues in management

Being the oldest occupation in the world, storytelling includes the practical functioning of every individual, family, organization, community and society.... The… Boye's notion of quantum is a marvellous monumental book that redefines the role of storytelling in organizational behaviour (Boje, 1991)....
10 Pages (2500 words) Essay

Audit Failure in Result of Shredded Reputation to Auditors

However, at the same time, even though the auditors are holding an outstanding image, as far as the public is taken into consideration, if there is any misconduct or malpractices taking place, and the auditor does not report about it, the status so held by the auditors will fell down in a drastic manner....
15 Pages (3750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us