Posts Categorized: All Articles

Hyundai & Kia overstated mileage

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Hyundai Motors America and Kia Motors America are being forced to lower the fuel economy estimates on the majority of their 2012-13 models after an investigation by the Environmental Protection Agency found that the companies overstated the fuel efficiency numbers for their vehicles in previous years. Based on the audit, they will also have to… Read more »

Who is the most Indebted Man in the World?

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The answer is that man is Former Société Générale rogue trader Jérôme Kerviel, who owes the bank $6.3 billion. His case tells us a lot about financial reform. Questions: 1. According to the article, how exactly do you carry out €50 billion (or about $73 billion) of unauthorized trades? (Focus on the controls mentioned.) 2…. Read more »

Product Chasing a Market – Fuzz Phobia

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When Veet hair removal cream came to China in 2005, sales were sluggish. It turned out that Chinese women did not worry about being too hairy. So the company selling the product promoted a new marketing plan with ads that equate hair-free skin with health, confidence, and “shining glory.” Questions: 1. How fast are sales… Read more »

It Beats Earning $20 an Hour?

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Flipping houses earned a bad reputation during the housing bubble, when speculators bought and sold millions of homes in search of easy profits. But as the real estate market is showing signs of life, the practice is gaining popularity again. Questions: 1. Which areas of the country have seen the most flipping action and why?… Read more »

The Unveiling of the Future?

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Apple’s iPad Mini will likely be unveiled at a special event on October 23. The device is expected to ship with a 7.85-inch screen and costs about half of what the current starting price for an iPad. Questions: 1. According to both articles, what have iPad sales to the K-12 market been doing to PC… Read more »

CEO Quits Effective Immediately

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In a surprise move, Citigroup announced on Tuesday that Vikram S. Pandit, the bank’s chief executive, had resigned, effective immediately. While his unexpectedly fast departure has raised many questions, critics said there were many signs that the end was near for Pandit. Questions: 1. How long had Mr. Pandit been chief executive of Citigroup? 2…. Read more »

Long Island Stock Broker Creates Complex Web of Deceit

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Stockbroker, Mark Hotton, defrauded the producers of a Broadway production of “Rebecca,” through the combination of a fictitious loan and phantom investors, conjured up as part of a sham plan to rescue the financially ailing show. Questions: 1. How was the complex fraud described by federal authorities? 2. How could the producers have been proactive… Read more »

The Disappearing Debt Suddenly Reappears!

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Jackie Esposito, of Guilford, Conn., got a letter that said her debt with JPMorgan Chase was canceling the amount she owed on a home equity account. While most people would be excited to get such a letter, Ms. Esposito was not. That is because Ms. Esposito had the debt legally wiped out three years ago… Read more »

When Will Apple Hit the Trillion Dollar Mark?

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When will Apple become the first company ever to be valued at $1 trillion? This new guessing game is the focus of the article by Nick Bilton. Questions: 1. Explain the $1 trillion in accounting terms (or the accounting equation). What is/are the product(s) that got the company to this point? Research these products and… Read more »

Feds Catch Bid-Rigging Bankers

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Federal authorities are pursuing legal action against bankers accused of systematically defrauding states, local governments and non-profits. The ongoing probe is focusing on bankers who have colluded about the offers they’ve made as they bid on contracts to invest municipal bond proceeds. Questions: 1. What is bid-rigging? Summarize the way in which the suspect bankers… Read more »