Prevent fraudulent financial reporting in stock market

Assignment Help Business Management
Reference no: EM133153078

1. Luckin went public in the U.S. in May 2019, listed in NASDQA and raising $561 million. Its success drew in big international investors such as BlackRock Inc. and support from banks including Credit Suisse Group AG. However, Muddy Waters Research's 89 page report claimed that Luckin was inflating the number of items sold per day by 69% in the third quarter of 2019 and 88% in the fourth, purportedly revealing fraud within Luckin.

Both Luckin's Chairman & co-founder Lu Zhengyao and co-founder Qian Zhiya were removed from the board of directors. Should both co-founders be liable for the shareholders' investment loss as the element of fraud was revealed even though a public limited company has limited liability?

2. Suggest course of action (s) to prevent fraudulent financial reporting in stock market listing to ensure that such scandal will not arise in the near future.

Reference no: EM133153078

Questions Cloud

Probability that heller highwater high school can hold : If at least seven (7) teachers can make it to the school by 9:30 AM (= 1 hour late), the school can stay open and have a valid (state approved) instructional da
Create segments-ranges using the replies given : What steps can you take using MS Access and/or SQL to clean your survey data?
CIVL3002 Concrete Structures Assignment : CIVL3002 Concrete Structures Assignment Help and Solution, Western Sydney University - Assessment Writing Service - Determine the critical design actions
What is the apparent order quantity : Question - For Raw material A007, a company maintains a safety stock of 5,000 pounds. What is the apparent order quantity
Prevent fraudulent financial reporting in stock market : Suggest course of action (s) to prevent fraudulent financial reporting in stock market listing to ensure that such scandal will not arise in the near future.
Analyze the home fitness platform industry : Using Michael Porter's Five Forces Model, Analyze the Home Fitness Platform Industry to decide if Lululemon's purchase of Mirror was a sound business decision t
What is the danger of a linear bias : 1. What is a linear bias? 2. What are the four types of nonlinear relationships discussed in the article?
Which innovation was leveraged for nefarious purposes : Besides 9/11, can you think of other situations in which innovation was leveraged for nefarious purposes? What can we, as public safety professionals, do to dec
How much income will the franchisor recognize : Prevailing market rate is 9%. PV factor is 3. 2397. On the fiscal year ended October 31, 2018, how much income will the franchisor recognize

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd