Branded Identities Essay Example | Topics and Well Written Essays - 2750 words

Branded Identities - Essay Example Similarly, the identities of brands, being closely linked with consumer behaviour, also have different value and impact over consumers' choice. Consumerism: Concept of consumerism has gone through various chronological advances. Traditional consumer models believed consumers are not effected by any influences but by their own brain's instinct and external factors like family, friends, choices cannot influence their buying decisions. This theory could not survive longer as it was limited in conception and did not fulfil the needs of various analyses. Traditional theory considered consumers as information processors who are not affected by any choices and alternatives available. On contrary it also describes that companies can dominate the mind of customers and customer don't bother about available or missing information. (Simon, 1955, Q. J. of Econ.) "The existence of underlying preferences is a vital scientific question for economists. If the answer is affirmative, then the evidence from cognitive psychology implies only that economists must look through the smoke screen of rules to discern deeper preferences that are needed to value economic policies. This is a difficult task but not an impossible one. If the answer is negative, then economists need to seek a foundation for policy analysis that does not require that the concept of 'the greatest good for the greatest number' be meaningful. I am guardedly optimistic that the question has an affirmative answer." (McFadden, D. 2000. p. 345-346). Consumerism & Psychology: Similarly, consumerism and psychological aspects are also attached together. Various theories are presented to establish a strong link between these two. Weber's ([1904] 1998) "iron cage" is also the depiction of psychological trap of consumers. Furthermore, Psychologist Barry Schwartz (1994), also is of the opinion that external and demographic factors psychological influence a person's buying behaviour. Barry Schwartz believes that companies offer incentives and psychological benefits to customers which are in real life very much meaningful for the consumers and consumers has a sense of achievement by having these benefits with them."By embracing the "freedom" of the marketplace in all aspects of our lives, we find that many of the things we value most deeply-meaningful, satisfying work; intimate, compassionate friends, family and community; real education; significant spiritual and ethical commitment; political involvement; and even, ultimately, material well-being-are increasingly difficult to achieve." (P. 10) Consumerism and its Historical, Social and Economic Impact: Cognitive psychologists believe that culture is manifest in peoples mind. (DiMaggio 1997, p.272; Cf. Shore 1996). They also believe that historical aspect and social background, and consumers' experiences play a vital role to develop their self-concept and identity. Different consumers behave differently because of their difference in socio-cultural background, behavior and economic perspective. 'Iron cage', is in fact, 'mental cage' that is influenced by various culturally framed mental fields.(Zerubavl 1991). Further

Marginal revenue in market economies Essay Example | Topics and Well Written Essays - 250 words - 138

Marginal revenue in market economies - Essay Example The first component is the marginal revenue (MR), which is the extra profit gained on top of the marginal profit when the output quantity is increased (Samuelson & Marks, 44). This means that every increase in output generates further revenue. The second component is the marginal cost (MC), which is the extra amount that is needed to produce an extra quantity (Samuelson & Marks, 45). Usually, this figure is constant for every additional unit of output. Thus far, the profit made by firms is arrived at by subtracting,  marginal cost from the marginal revenue (MR-MC). The difference is what is called the marginal profit. Nonetheless, firms maximize their profits when the additional MR equals the extra MC. Similarly, firms are said to maximize their profits when their average total cost (ATC) is at their lowest. Hence, it can be deduced that firms maximize their profits when MR equals MC, which also equals ATC (Samuelson & Marks, 47). Accordingly, this analysis is important for the goo dness of market economies because it provides the firms with the most necessary empirical association in market economies. For one, it tells firms to first examine their basic goal, which is profit. This is derived from the difference between MR and MC. Secondly; it informs firms that their decisions on prices and output quantity have the significant impact on their market profits (Samuelson & Marks, 31). Finally, it informs firms that they must make good decisions to balance their demand and cost curves if they are to maximize their profits at the lowest

Chap 10 Essay Example | Topics and Well Written Essays - 250 words

Chap 10 - Essay Example The food contamination arose from the mishandling of a critical ingredient, turmeric powder, by the supplier. This ingredient is key in the preparation of numerous stews and soups, which have always been our customer’s favorite delicacy (Crandall, William, John and John 154). The turmeric powder supplied had been initially stored in an environment whose temperatures altered its original composition. We regret this hitch and apologize to our loyal customers. We will never repeat this mistake again. The restaurant takes full responsibility of its customers. It will help the customers who are in critical conditions to get better. I write this proposal to you because of an observation I have made concerning the usage of printing paper in the organization and its wastage. Members of the organization waste a lot of printing paper by printing unclaimed jobs that strain the company resources and dirty the working environment (Crandall, William, John and John

The Differences Between The English Colonies History Essay

The Differences Between The English Colonies History Essay In the 17th and 18th century, many English people sought after religious freedom and riches, so they migrated to North America, where they established different colonies to create better lives for themselves. Some colonies faced many struggles, while others were better off. British colonies differed from each other by the types of settlers, intent for the colonies, environment, and indigenous people encountered. Between the late 16th and early 17th century, Englands population grew twice its size due to the new nourishing American crops. With more people, came the higher demand for food and clothes, thus creating high inflation (Norton et al. 2-3a). There were also not enough jobs or land for the newly increased population. According to Norton et al., Steady streams of the landless and homeless filled the streets and highways. With that said, the rich did not like how things were going and said that Britain was way too crowded. They believed that better opportunities awaited them in America. Everyone thought that there was plenty of land available for the taking in America as well (Norton et al. 2-3a). With these recent economic changes, came a religious transformation. The English reformation started when Henry VIII wasnt granted a divorce by the Pope. He decided to leave the Roman Catholic Church to create the Church of England. He originally did this so he could get a divorce from his wife because she gave birth to a daughter instead of a son. He wanted a King to rule after him, not a Queen (Norton 2-3b). The Church of England Robinson 2 collected a lot of taxes, which upset many of the other Christian religions (Norton 2-3d). These would include the Puritans, Separatists, and Presbyterians. The Church soon tried to conform the people of England. No one wanted to be prosecuted for their different religious beliefs so they fled to America for religious freedom (Norton 2-3d). The settlers that came to the Southern colonies were wealthy, merchants, and gentry (Hollitz 17). The southern colonies included Maryland, Virginia, Georgia, South Carolina, and North Carolina. The people in the South were mostly Anglican or Catholic, but unlike the settlers in the middle and northern colonies, the southern colonists were not that interested in converting the Natives to Christianity; they were focused on making a profit (Hagen, trexxpublishing.wordpress.com). Some of the northern colonies were Rhode Island, Massachusetts, Maine, and New Hampshire. The North was colonized by the Puritans. The Puritans were a group of radical English Protestants that wanted to purify the Church of England. They also wanted to be able to practice their religion freely without people trying to convert them, so they moved to America, specifically to the North. At first, the middle colonies were called New Netherlands because they were originally founded by the Dutch, but the British took over in the early 18th century. The middle colonies consisted of Pennsylvania, New York, New Jersey, and Delaware. After the British crown took over New Netherlands, it was founded by the Quakers. The Quakers believed that there should be equality for all. They were originally in the North with the Puritans, but soon colonized in the middle region because they faced scrutiny over their religious views (Hagen Robinson 3 trexxpublishing.wordpress.com). Some of their views were the total opposite of the Puritans, and they were beaten and unfairly treated because of this (Hagen trexxpublishing.wordpress.com). After being founded by the Quakers, many people of other religions such as the Lutherans, Jews, Catholics, Baptists, Orthodox, Calvinists, and Presbyterians joined in the colonization process (The Middle Colonies). The middle colonies became a melting pot and took on different qualities of the northern and southern regions. At first the colonists in the South were mainly attracted to finding gold, but that ended fairly quickly. The realization that the colonists had to be able to support themselves in order to survive eventually kicked in (Searle helium.com). People of the South were looking to make a profit, and according to Searle, they did find rice, tobacco, and cotton to be profitable exports. The most popular of the three at the time was tobacco. For the colonists that owned big plantations, life was easy, but for those that didnt own that much land, life was horrible (Searle helium.com). The owners of the plantations made a lot of money off of their slaves and tobacco, while the small land owners had a hard time staying alive (Searle helium.com). The South was focused on harvesting, which was different than the North. The Puritans in the northern colonies were mainly focused on religion. Their whole lives revolved around their religion. According to Norton et al., many devoted themselves to self- examination and Bible study, and families often prayed together each day under the guidance of the husband and father. If you didnt practice religion the same as the Puritans, you were looked down upon and sometimes even beaten. Even though the Puritans primary focus was religion, Robinson 4 they did trade and manufacture goods (Hagen trexx.wordpress.com). Some of these goods included ships, fish, and lumber. The Quakers came to the middle region to escape the scrutiny they received in the North. They were excepting of others, which was good because they middle colonies were filled with many different religions. Everyone tolerated each other because no one was in control of the others (The Middle Colonies). At first, most of the focus was put on religion. Later, the settlers became interested in profit, like the south. The middle region produced goods such as wheat, corn, and tobacco. Whatever was produced in each region was largely dependent upon their environments. In the South, the climate was much hotter and had richer soil, leading to their incredible farming abilities. In the North, the soil was unfit for agriculture, which is why their economy was based on their industrial business. The middle region was a mixture of both the North and the South because it had rich soil for farming, but also traded and created goods (Economic Differences Between the Northern Southern Colonies). Even though the South was flourishing with the tobacco business, the colonists had a hostile relationship with the indigenous people there. When the colonists first came to the south, they encountered the Powhatans, and then later they met the Algonquians. The Powhatans and the colonists agreed to a peace treaty (Hollitz 17). In return the Powhatans wanted items that would make them more advanced than the neighboring tribes (Hollitz 17). The relationships that the southern settlers had with Powhatans started off okay, but soon grew bad. According to Hollitz, the fragile relationship soon foundered on mutual mistrust. The trust between the two Robinson 5 faltered because neither was able to rule over the other, thus leading to the colonists kidnapping the chiefs daughter, Pocahontas. With the Algonquians, the exchange between the southern colonists and them were hostile because of cultural differences. For instance, Native men didnt do agricultural work, while English men did. Even their views on property ownership were seen as a major problem. The English thought that they were superior to the Algonquians, so they constantly showed disrespect towards them (Hollitz 18). In the North, the colonists initially had a very peaceful relationship with the Natives. When the settlers came across the Pokanets, they signed a peace treaty. The natives provided the colonists with food in return for certain items (Norton et al. 2-6d). The Pokanets helped keep the colonists in the North alive. In the middle region, the colonists had a relatively peaceful relationship with Iroquois. The Quakers thought that it was imperative to have a good relationship with Natives (The Middle Colonies). In conclusion, there were many differences between the British colonies based on which region they were in. As the colonies develop over time, the many differences between them may prevent the colonists from coming together in a united front to fight a common cause. If everyone has views that clash, then how can they agree on anything? When conflict comes in to play, the colonists will have to put their contrasting ideas on the backburner and fight for their independence. Robinson 6

Positions of Blacks in the Civil War and Emancipation Essay example --

â€Å"Once let the black man get upon his person the brass letters, U.S., let him get an eagle on his button, and a musket on his shoulder and bullets in his pockets, and there is no power on earth which can deny that he has earned the right to citizenship in the United States." The quote mentioned above was proclaimed by African American abolitionist Frederick Douglass, and served as motivation for African Americans to enlist in the Union’s Army efforts and take an initiative in their future. With President Abraham Lincoln's issue of his Preliminary draft of the Emancipation Proclamation in 1862, the Civil War developed to be a war to ultimately save the union and to abolish slavery. Blacks overall played a substantial part in the victory of the union, helping them turn the tide against the confederate army. In all, there were roughly 200,000 black soldiers who served in over 100 units in the Union Army and Navy (10 percent of the Union). But while their involvement in war efforts deemed valuable there was tension on many fronts, there were major anti-Black prejudice against black involvement from people in Free states and in the loyal slave states; who were not in favor of arming the Black soldiers and letting them participate in combat. With tha t being said, what were the Social conditions for blacks in the North (Franklin) and the South (Augusta) prior to the war? How did many African Americans participate in the war and in what way? Did these conditions post war? The main purpose of this paper is to monitor African American contributions to the war and illustrate how these contributions changed their social status in society. With the election of Abraham Lincoln in 1860, it forecasted tremendous change for the entire country... ...863. http://valley.lib.virginia.edu/papers/FN0000. †¢ Christy, Jacob. â€Å"Franklin County: Jacob Christy to Mary Jane Demus, August 10, 1864.† The Valley of the Shadow, August 10, 1864. http://valley.lib.virginia.edu/papers/F3004. †¢ Hargrove, Hondon B. Black Union Soldiers in the Civil War. Jefferson, N.C: McFarland, 1988. †¢ Jordan, Ervin L. Black Confederates and Afro-Yankees in Civil War Virginia. Charlottesville, Va.: University Press of Virginia, 1995. †¢ Mobley, Joe A. Weary of War†¯: Life on the Confederate Home Front. Westport, Conn.: Praeger, 2008. †¢ Quarles, Benjamin. The Negro in the Civil War. Boston: Little, Brown, 1969. †¢ Wesley, Charles H. Afro-Americans in the Civil War: From Slavery to Citizenship. 1979 ed. International Library of Afro-American Life and History. Cornwells Heights, Pa: Publishers Agency, 1978.

Distribution decisions Essay

The tutorial about distribution decisions deals mainly with establishing an effective and efficient system that will make the products accessible to the market. It teaches the different channels of distribution including the process of ordering, handling and shipping, storage, display, promotion, selling, and information feedback. The channels include resellers, specialty service firms who are important although a little costly. There are two kinds of channel arrangements: independent (no binding relationship), and dependent (has binding relationship). Also, there are three kinds of distribution systems: direct distribution systems, indirect distribution systems, and multi-channel hybrid systems. The tutorial also warns of the issues in establishing channel relationships such as delivery, profit margins, other incentives, packaging, training, and promotional help. The tutorial on retailing examines retailers as a type of resellers of a product to consumers who only want to buy in small quantities. Their main concerns are customer satisfaction, ability to acquire the right products, product presentations, traffic building, layout, location, and keeping pace with technology. Retailers are categorized in many ways; included in the tutorial are: target markets served (mass, specialty, exclusive market), product offerings (general, multiple lines specialty, single line specialty merchandiser), pricing strategy (discount, competitive, full price pricing), promotional focus (advertising, direct mail, personal selling), distribution method (store-based which can be stand-alone, strip-shopping center, shopping area, and regional shopping mall; and non-store sellers which can be online sellers, direct marketers, and vending), service level (self, assorted, full service), and ownership structures (individually owned, corporate chain, corporate structure, contractually licensed). There are also a variety of retail formats which are mom-and pop, mass discounters, warehouse stores, category killers, department stores, boutique, catalog retailers, e-tailers, franchise, convenience store, and vending. In wholesaling, the sellers sell in bulk to their consumers. Their main concern involves disinter-mediation, facility location, transportation costs, adapting to new technologies, and offering non-product assistance. They are categorized according to products carried (general and specialty merchandise), promotional activities (extensive and limited promotion), distribution (stationary location with customer and not customer accessible; and non-stationary location with mobile and no facilities), service level (full, limited, and no service), and product ownership (do take and do not take title). Wholesale formats consist of general and specialty merchandise, contractual, industrial distributors, cash-and-carry, truck, rack jobber, drop shipper, broker, and agent. In managing product movement, three tasks are important which have a cost-service tradeoff: ordering and inventory management, product storage, and transportation. Ordering and inventory have to be managed by considering order entry and processing, demand forecasting, customer knowledge, channel relationship, physical product handling, storage and transportation. The tutorial is effective in a sense that it takes the learner through a step by step process in understanding the definitions of terms, what the different topics are about, and gives the learner an idea on how to apply the process in real marketing situations. The tutorial is also effective because it is simple and easy to understand. It also breaks down complicated topics and lays them out in an easy-to-understand manner. The only problem with the tutorial is that it lacked examples of real life situations to which the approaches were used, especially since examples often makes everything clearer and makes the whole presentation have more real life applications and not just theoretical things that can be skipped In the issues in information and IS, information exchange and communication is very valuable between the company and their distributors. Any decision by marketing should be communicated internally in production. The IT manager is to integrate the communication among production, marketing and distributors to streamline everything. A sophisticated tracking of orders and products is also necessary among them.

Accounting and Corporate Governance Essay

The memo is to address the accounting maneuver of Lehman’s Repo 105 (or 108) from perspectives of accounting and corporate governance. The memo will illustrate the role of repo transaction in Lehman’s business model, analyze the accounting irregularities regarding repo by Lehman, observe auditors’ role in these irregularities, and discuss the corresponding accounting and corporate governance issues. In addition, the memo will provide recommendations on how to prevent financial institutions from abusing regulatory deficiencies by emphasizing on the importance of accounting regulation, auditors’ role, and business ethics. See more: Recruitment and selection process essay The major goal of Lehman’s Repo 105 is to temporarily remove troubled securities from its balance sheet while presenting favorable financial statements to its investors, creditors, rating agencies, and the public. By temporarily removing these securities from its balance sheet, Lehman made its leverage ratio much lower. With low leverage ratio, Lehman would keep its credit rating at high level and maintained its customers’ confidence. A repo, or sale and repurchase agreement, is an agreement in which one party transfers to another party as collateral for a short-term borrowing of cash, while simultaneously agreeing to repay the cash and take back the collateral at a specific point in time (SFAS 140). An ordinary repo should be treated as a financing transaction and should be accounted for as a secured borrowing. An ordinary repo is a commonly-used form of secured loan between financial institutions. In fact, repo does not have real economic substance. However, by the Repo 105 transactions, Lehman did the same in an ordinary repo, but because the assets value were 105 percent or more of the cash received, accounting rules permitted the transactions to be treated as sales rather than financing. Lehman aggressively employed Repo 105 transactions before reporting periods at the end of 2007 and the first two quarters of 2008. During the reporting periods, Repo transactions helped Lehman remove assets from balance sheet and use cash received to payback short-term loans. In addition, Lehman did not report any liabilities that reflected the obligation to repay the borrowed funds. After the reporting periods, Lehman would borrow funds to repurchases the transferred assets. Then these assets would be reversed on the balance sheet again. The consideration is whether Lehman’s accounting for Repo 105 violated the Generally Accepted Accounting Principal (the GAAP). Statement of Financial Accounting Standards No. 140 (SFAS 140) provides the accounting guidelines on repo transactions. A company is permitted to account for these transactions as sales only if the transferor surrenders control over the assets to transferees. To account for a repo transaction as a sale, all three conditions must be met: 1) the transferred assets must be isolated from the transfer, 2) transferee has right to pledge or exchange the assets, 3) the transferor does not maintain effective control over the transferred assets. A typical repo contract can easily meet the first two conditions. However, in order to take advantage of favorable accounting treatment as sales transaction, Lehman has employed some accounting maneuvers to meet the third condition. SFAS 140 (Paragraph 218) states that the transferor’s right to repurchase is not assured unless the repurchase price is 102 percent or less of the cash received, or the cash received is 98 percent or more of the value of the transferred assets. â€Å"The Board believes that other collateral arrangements typical fall well outside that guideline (FASB, 2000, p. 91). † The repurchase price of Repo 105 is 105 percent of the cash received, which is higher than the 102 percent guideline. As a result, Lehman could argue that Repo 105 did not meet the third condition of maintaining effective control, and then classified it as sales. Based upon the above analysis, Lehman’s accounting for Repo 105 seemed to be technically in compliance with the U. S. GAAP. However, Lehman’s bankruptcy examiner Anton R. Valukas (2010) provided evidence showing that Lehman intended to use Repo 105 to manipulate its 10-K and 10-Q financial reporting. Valukas argued that the classification of these repo transactions should be based on its economic substance rather than its form (such as the 102 rule). Since Lehman had clear intent to buy back the transferred assets under Repo 105, these transactions are clearly secured borrowing and should not have been recorded as sales. The obvious accounting irregularity is Lehman’s failure of disclosing Repo 105 transaction in its quarterly and annual financial reports. Valukas (2010)’ report indicates that Lehman’s SEC 10-K and 10-Q filing between 2000 to third quarter, 2007, regularly misrepresented some repo transaction as â€Å"secured borrowings† despite that it actually recorded as sales. In addition, Lehman never disclosed its involvement in Repo 105 its 10-K of 2007 and the first 10-Q of 2008 (Chang et al, 2011). In fact, Lehman has aggressively involved in Repo 105 during the end of 2007 and first two quarters of 2008, removing approximately by $38. billion in fourth quarter 2007, $49. 1 billion in first quarter 2008, and $50. 38 billion in second quarter 2008 (Valukas, 2010). It is clear that Lehman’s misrepresentation and failure of disclosure of its Repo 105 practice is material enough to mislead its investors, debtors, rating agencies and the public. As the auditor of Lehman Brothers, Ernst & Young approved the use of Repo 105 transactions. These transactions were characterized as sales of assets and created a misleading picture of Lehman’s financial position during the financial meltdown. Ernst & Young said in a statement: â€Å"Our last audit of the company was for the fiscal year ending November 30, 2007. Our opinion indicated that Lehman’s financial statements for that year were fairly presented in accordance with Generally Accepted Accounting Principles, and we remain of that view. † Ernst & Young would like the public to believe their responsibility for Lehman’s financial statements ends with the 2007 10-K. Actually, It does not. According to the examiner’s report, Ernst & Young had just started planning for its year-end audit of Lehman when the firm collapsed into bankruptcy. Lehman remained an E&Y client until the bankruptcy in September 2008. This period included two more 10-Qs. But most troubling for the auditors could be allegations in the examiner’s report that Ernst & Young did not inform the audit committee on Lehman’s board about a whistleblower who had expressed concerns about the repos to them. In a March 2010 letter to its clients, E&Y defended its audit work for Lehman. The letter states that Lehman’s bankruptcy resulted from unprecedented adverse events in the financial markets, declining asset values, and loss of market confidence that caused a collapse in its liquidity. The firm believes the bankruptcy wasn’t caused by accounting or disclosure issues, as Lehman’s financial statements clearly portrayed it as â€Å"a leveraged entity operating in a risky and volatile industry. † The most telling assertion in the complaint concerning E&Y’s alleged misrepresentation of Lehman’s compliance with applicable accounting standards is that E&Y didn’t require the financial statements to reflect economic substance rather than just legal form. In other words, the complaint accuses E&Y of letting Lehman engage in transactions without business purpose in order to achieve a specific financial-statement result. The bankruptcy examiner said that the sole function of Repo 105 transactions as employed by Lehman was to reduce its publicly reported net leverage and net balance sheet. Although Lehman knew that none of its peer companies were using the same accounting tricks to arrive the leverage numbers, it continued to rely on the use of Repo 105 substantially, at a level that is much higher than the originally defined â€Å"materiality† level by the management. As a consequence, it left Lehman with heavy concentrations of illiquid assets which could not be monetized to meet its current obligations (Lehman Brothers Holding Inc. v. Debtors, 2010). The Examiner did not find supporting evidence to bring â€Å"colorable claims† (Lehman Brothers Holding Inc. v. Debtors, 2010) against Lehman’s directors, however, they should have better monitored the managers. And the examiner did find sufficient evidence to support a colorable claim against certain senior officers for breaching their fiduciary duties to shareholders and other stakeholders because they failed to inform the public and shareholders about the substantial use of Repo 105 by non-disclosure of related information and by filing materially misleading periodic reports, which risked the company with potential liabilities; and they also failed to advise the Board of Directors of the Repo 105 practice (Lehman Brothers Holding Inc. v. Debtors, 2010). The examiner also concluded that sufficient evidence existed that Lehman’s quarter? nd Repo 105 practice was material and should have been disclosed in the financial statements. In addition, Lehman had an obligation to disclose required information relate to Repo 105 in its MD&A statement. In terms of accounting malpractice, Lehman’s external auditor, Ernst & Young, was also held responsible for allowing Lehman’s financial reports to go unchallenged. Ernst & Young well knew the practice of Repo 105 adopted by the company, but failed to review the volume and timing of Repo 105 transactions, and failed to access the materiality of information omitted regarding Repo 105 transactions. Furthermore, Ernst & Young failed to conduct investigations with regard to the concern about Repo 105 raised by Matthew Lee, then-Senior President of Finance Division. In conclusion, corporate governance was lacking both internally and externally (Lehman Brothers Holding Inc. v. Debtors, 2010). The accounting irregularity of Lehman’s Repo 105 practice partly due to the deficiencies of accounting rules, however, integrity or accounting professionals as well as business ethics also play an important role in the accounting malpractice. In 2009, FASB issued SFAS 166 to amend SFAS 140. These efforts could close some loophole in accounting standards. Good corporate governance requires not only effective board and ethical top management, but also reliable accounting personnel and independent outside auditors, to properly perform their jobs and fulfill their responsibilities, to create the â€Å"check and balance† that can maintain the financial health of a company and at the same time to reduce agency cost. In case when one party went badly, the others could and should be there to detect the potential problems and to monitor and correct the mistakes. In summary, the ethical challenges faced by E&Y in deciding how to address issues with a long-standing and profitable client may be faced by many public accountants. In fact, accountants in all areas of the profession frequently face similar ethical issues of simultaneously complying with their duties for faithful service and loyalty to their employer or client while respecting their responsibilities to other stakeholders. Doing the right thing† for all concerned may sometimes be an impossible assignment. Guidance such as the overarching principles of honesty, fairness, objectivity, and responsibility contained in the IMA Statement of Ethical Professional Practice will go a long way toward helping all accountants to do the right thing. Doing the right thing is always the best policy in the long run.