To Cheat or Not to Cheat   Term Paper ID:43825 Click to get this paper

Essay Subject: Is keeping the books open an extra day to avoid defaulting on debt covenants ...... More...

2 Pages / 450 Words 0 sources, 0 Citations, APA Format $8.00 Return to List of Papers

Paper Abstract: Is keeping the books open an extra day to avoid defaulting on debt covenants unethical? Only if the company is subject to an audit and the irregularity would be detected, resulting in an uncalled for calling of the loan. Paper Introduction: To Cheat or Not to Cheat A simple answer to the dilemma is to call the customer and ask themto wire the money to the company Assuming that they are not in as tight acash bind as you are you should be able to offer a discount of some sortto make it worth their while Alternatively they could go to the bank andget some sort of overnight loan though that could be much more expensive Simply leaving the accounts open for a Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. A true ethical dilemma only arises if the company is chronicallyshort of cash and in a downward spiral. This would hurt the owners, theworkers, and oddly enough the insurance company as well if the fear of truedefault is in fact unfounded. This ethical dilemmabetween owners and lenders is why debt covenants are used in the firstplace. Theneveryone is at risk if the letter of the law is followed, and everyonebenefits from keeping the books open. Assuming that they are not in as tight acash bind as you are, you should be able to offer a discount of some sortto make it worth their while. Then it would be better for theinsurance company to call the loan, force the company into bankruptcy, andcut its losses. If this is an isolated incident, and the company canprove it, Riverside should either be able to convince its lender to let itslide or get substitute funding, preferably with fewer debt covenants. Itmay not be in the insurance company's best interest to do so, however, forcalling the loan when there is little cash makes it unlikely that the loanwill be paid in full. Arranging for temporary funding wouldonly cost extra money, which helps no one. It would be better for the workers and owners, however, tofudge the situation and keep benefiting from some sort of cash flow in thenear future at the insurance company's expense. There is no question that the insurance company has the right to callthe loan at any point should the balance fall below the required amount. A simple answer to the dilemma is to call the customer and ask themto wire the money to the company. To Cheat or Not to Cheat ? The only time Schmitt's orders make any sense is if no audit is doneand the insurance company will never find out about the irregularity. However, none of these possibilities is really helped by takingSchmitt's advice. Shouldthe lender find this out from the auditor, they might panic and force thecompany into technical bankruptcy anyway. Alternatively they could go to the bank andget some sort of overnight loan, though that could be much more expensive.Simply leaving the accounts open for a day will not survive an audit, whichwill compare the daily cash amounts with the actual bank statements. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

Many of our Papers can be Downloaded From This Site!

PLEASE READ THIS, IT IS IMPORTANT!

Office hours are Monday through Friday, from 9 am to 5 pm (PST). You may place orders for custom research over the phone during office hours. E-mail requests can be made to our graduate and undergraduate department any time, and will be reviewed during office hours. You may also contact customer service any time through e-mail, and we will review your message during business hours. A great many papers can be downloaded right from this site, but not all of them. If you would like to know if a particular paper is downloadable, just look in the description for: "Available for Internet Download: Y" or "Available for Internet Download: N" If you wish to purchase a paper which is NOT available for immediate download, you will need to make other shipping arrangements. Also, please be aware that these orders are processed Monday through Friday from 9 am to 5 pm (PST). If you place your order after 4:45pm on Friday, it will not be processed until the following Monday morning. We charge $8 per page for all of our pre-written reports, plus shipping (and tax for California residents). However, the highest cost of any ONE report is $136, or 17 pages. Please, take a moment. Make sure you have chosen the report you want or need BEFORE you complete your order. If you are not sure, allow us to help you. We do not offer refunds or exchanges, so it is important for you to let us answer your questions during office hours. Reports which are e-mailed or downloaded are in Microsoft Word format. We are making more reports available for e-mail delivery faster than we can update our listings. Please call to check on the status of particular reports. There are many other shipping options which are listed on the Checkout page.