Posts Tagged: contemporary business issues

Federal Financial Aid Fraud

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A federal lawsuit was filed by seven former employees against Harris School of Business and its for-profit parent education company, Premier Education Group, which owns more than two dozen trade schools and community colleges operating under several names in 10 states. The suit alleges that school officials routinely misled students about their career prospects and… Read more »

Think before you Speak

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AOL recently altered its 401(k) program, by switching matching payments to one lump sum at year-end instead of throughout the year. The change was implemented, according to CEO, Tim Armstrong, because of soaring medical costs that arose in part from two families with “distressed babies.” Questions: 1. What is a 401(k)? 2. What was Armstrong’s… Read more »

FDA Cracks Down on Scary Imports That Impact Public Safety

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India is the second largest exporter of over-the-counter and prescription drugs to the U.S. However, the FDA has recently increased their inspections of these manufacturers due to falsified drug test results, safety lapses, and the sale of fake medicines. Questions: 1. What percentage of U.S. over-the-counter and generic prescription drugs are supplied by India manufacturers?… Read more »

Royal Fraud?

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Spain’s Princess Cristina was questioned in court over whether she and her husband illegally used company funds for personal expenses, including lavish parties at their modernist Barcelona mansion. Her her husband, Inaki Urdangarin, former Olympic handball medalist turned businessman, is accused of defrauding regional governments of millions of euros of public money. Questions: 1. Summarize… Read more »

What is a Super Bowl Ad Worth?

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Derek Thompson presents evidence on both sides of the debate about whether Super Bowl ads are a waste of money or worthwhile advertising venues. Questions: 1. Rather than the price you pay for the advertisement, what does Mr. Thompson say that Super Bowl advertising is all about? 2. What is this year’s Super Bowl ads… Read more »

A Cost Benefit Analysis of Super Bowl Commercials

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Advertisers paid up to $4 million for a 30-second spot during the Super Bowl. This article examines the Go Daddy spot and the potential cost effectiveness of the company’s Super Bowl ads. Questions: 1. According to the article, how many customers does it take to break even and what amount on average must they spend?… Read more »

Sometimes Plans Just Don’t Work Out

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Although it was an excellent strategy to run a two-minute Bob Dylan ad at the end of the third quarter, the moment of peak Super Bowl excitement, the Seahawks stole the show early in a 36-0 blowout. Questions: 1. How much did the 2-minute ad cost Chrysler? 2. According to the article, when will the… Read more »

No Symbolic Message of Contrition for Jamie Dimon

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What a difference a year makes for Jamie Dimon! Last year, he had half of his paycheck cut to a measley $11.5 million for an embarrassing multi-million dollar trading blowup that resulted in $1 billion in fines. This year, after Chase paid the feds $20 billion in penalties for transgressions committed on Dimon’s watch, JPMorgan’s… Read more »

Don’t Mess with the Chef: Bob McDonnell’s downfall

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Former Virginia governor Robert F. McDonnell and his wife, Maureen, were charged Tuesday, January 21, with illegally accepting gifts, luxury vacations, and large loans from wealthy Richmond-area businessman, Jonnie R. Williams Sr., in return for special treatment from the state government. Questions: 1. Did McDonnell’s wife commit fraud by accepting the $3,500 refund? Discuss. 2…. Read more »

Starbuck’s App: Are You At Risk?

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The Starbuck’s app, used by more than 10 million customers that purchase drinks and food directly from their smartphones, was exposed as risky by security researcher, Daniel Wood. According to Wood on January 13, “There are multiple instances of the storage of clear-text credentials that can be recovered and leveraged for unauthorized usage of a… Read more »