Principals Of Finance Three Part Assignment
This is a three part assignment. Title each prompt with the corresponding prompt number (Prompt 1 / Prompt 2) and the research paper as "Fraud Cases"
Prompt #1 - The firm's self-supporting growth rate is influenced by the firm's capital intensity ratio. The more assets the firm requires to achieve a certain sales level, the lower its sustainable growth rate will be. Many experts argue that it is better for an organization to grow organically or by putting the money back into the business and not taking on debt. Consider your own organization that you currently work for or have worked for in the past. What is their approach to growing the business? How would you advise your company based on what you have learned this week in terms of self-supporting growth?
Prompt #2 - Managerial entrenchment occurs when managers gain so much power that they can use the firm to further their own interests rather than the interests of shareholders. The shareholders are essential to the organization. For this discussion, consider that you are the CEO of a large public-traded organization. What steps would you take to ensure that your management team makes decisions for the better of the stakeholders and not their own interests? Provide specific steps based on your research of organizations that have faced this issue in the past.
Research Paper
Research fraud cases that involved agency conflicts. Provide the following:
• Overview of the organization
• Who was involved?
• How was the fraud committed?
• What was the outcome?
• What recommendations do you have to stop such a fraud relating to this conflict of interest?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.