Please answer the following question: What environmental factors must be considered in analyzing companies and why do you think the factors you list are important? With respect to the discussion question, please make sure that your answer is grammatically correct and that you have checked your spelling.
Your required responses to 2 peers’ posts must be posted prior ( will post them later)
last discussions replies
1.The article I decided to do was the World Com scandal in 2002. It is about how WorldCom lied and fabricated their balance sheet and how they claimed $11 billion in revenue which was never true in the first place. Bernard J. Ebbers, CEO of the company, committed fraud. Law would be changed forever and their would be a massive increase in regulation among auditors across the world. “The WorldCom fraud presumably could have been prevented had the company had good enough internal controls to prevent Scott D. Sullivan, the chief financial officer who later pleaded guilty and testified against Mr. Ebbers, from ordering changes in accounts just to allow the company to report phony profits.” Internal influences led Ebbers to make bad decisions and ultimately sent him to prison for 25 years. After Ebbers was convicted of the crime, the Sarbanes-Oxley act would be put into place which would require companies to be able to report any material weakness and strengths in internal controls.
2. The article I talked about was about Martin Shkreli. A federal jury convicted Shkreli guilty of deceiving investors about the performance of two hedge funds he managed, defrauding investors in his first pharmaceutical company, Retrophin, and stealing money from Retrophin to compensate investors for losses he hid. Shkreli rose to fame as the chief executive officer of Turing Pharmaceuticals by increasing the price of the antiparasitic drug Daraprim, which is widely given to AIDS patients and others with impaired immune systems, from $13.50 per pill to $750. The Securities and Exchange Commission presented the jury with all of these charges.
