Companies are aware that analysts focus on protability in evaluating nancial performance.

Companies are aware that analysts focus on profitability in evaluating financial performance. Managers

have historically utilized a number of methods to improve reported profitability that are cosmetic in

nature and do not affect “real” operating performance.These methods are subsumed under the general

heading of “earnings management.” Justification for such actions typically includes the following

arguments:

1) Increasing stock price by managing earnings benefits stockholders;thus,no one is hurt by these actions.

2) Earnings management is a temporary fix; such actions will be curtailed once “real” profitabilityimproves, as managers expect.

Determine:

a. Identify the affected parties in any scheme to manage profits to prop up stock price.b. Do the ends (of earnings management) justify the means? Explain.c. To what extent are the objectives of managers different from those of stockholders?d. What governance structure can you envision that might inhibit earnings management?

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more