BBDE casestudy

Topics: Management, Business ethics, Corporate governance, Ethics / Pages: 3 (883 words) / Published: Jun 6th, 2015
Case study 1

1. What decisions or actions taken by the individuals in this case are questionable? The first problems identified in this case was that the company had no laws and regulations. I think the decisions of everyone in this case are questionable. No one, from the board of directors, Jamie, Don, and Randy, is willing to stand up to Rulan and hold him accountable for his actions. With the information given it seems at Rulan is more concern about micromanaging trivial things like the color of the carpet than setting corporate laws or regulations. Because there is no regulations in place Rulan seem to look over the important issues within the company. Within the background of Rulan they spoke about how one class in college help make him think he was a master of accounting. The company also was paying for expensive for at least one person that wasn’t an employee of BBDE. Jamie received receipts for the trip to Europe and noticed the company also was paying for Rulan wife to travel along before the conference. There was no proof of how much the travel expenditures actually came to, but there was a reimbursement check written five week before. Rulan was making decisions that affected the company, with no input from the board or staff. BBDE’s management, board of directors, and Don were mismanaging or not managing the company correctly. Rulan and Don’s management ideas seemed to be if you can get away with it then do it.
2. Who is being affected by the issues you identified in question 1? Are the effects good or bad? The people that are being affected the most is the entire company. The lack of regulations within the company are having a negative affect on the company and the employees, Jamie and Don were just an example of how Don’s action are affection the employees. If the problems continue the employees will find other companies to work for or Don could bankrupt the company. BBDE could also be facing federal and local

References: page Noreen, Eric W., Peter C. Brewer, and Ray H. Garrison. Managerial Accounting for Managers. New York: McGraw-Hill Irwin, 2011. Print.

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