Upside or downside?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, Purdue has acquired the for-profit Kaplan University to extend its reach into online and adult education, which some see as an unusual move for a public institution.

Questions:
1. What were the benefits to Purdue of acquiring Kaplan?
2. What are the potential downsides of this acquisition for Purdue?
3. What are the terms of the agreement?
4. What is the 90/10 rule mentioned in the article?
5. What are some of the past legal challenges against Kaplan?

Source:
Douglas-Gabriel, D. (2017) Purdue acquires for-profit Kaplan University. The Washington Post, April 27 (Retrievable online at https://www.washingtonpost.com/news/grade-point/wp/2017/04/27/purdue-acquires-for-profit-kaplan-university/?tid=hybrid_mostsharedarticles_1_na&utm_term=.a329d3c19334)