Part 2 of 10, Fraud Inoculation

Part 2 of 10 Background and History The former CFO of a multi-location publishing house in the Greater Phoenix area is now serving time in prison (as of December 2011) for committing fraud and embezzlement. A detailed analysis of the before and after situations at the defrauded firm might prove instructive to any small business […]

Is Fraud Inoculation Possible for a Small Business Firm?

Part 1 of 10 Definitions and Challenges If by inoculation, one means 100% fraud prevention in the future, then the short answer is no. Webster’s dictionary definition of fraud includes the following two sentences, “No definitive and invariable rule can be laid down as a general rule in defining fraud, as it includes surprise, trickery, […]

The Wonders of a Free Market #2

A student asks: But can citizens and the free market really fix themselves? A comment from the website of the Department of Justice (2011) states that the competitive process, which is within free markets, only works when competitors set prices honestly and independently.  I guess I’m partial because I work for a state agency, but […]

The Wonders of the Free Market

A student asks: I have considered the future and it scares me a bit. If those people in leadership positions of both corporate America and our government are unable to make and handle the hard choices and correct the real problems, what kind of future do we as individuals and we as a country have […]

Cash is King, Again

GAAP accounting assumes and insists that there exists within the firm a realistic matching of revenue and expense. This notion makes sense, particularly if someone is looking at the firm’s financial statements and wants to understand the firm’s revenues or expenses during a specific period of time, say for a month, or a quarter or […]

A Working Definition of Right-leaning versus Left-leaning

The Problem   One of my economic students had a problem dealing with the many definitions circulating that attempt to describe what it means to be either right-leaning or left-leaning, in a political sense. She was confused trying to discern among the many voices she was hearing. For instance, many people today label the mainstream media […]

Defrauding the Government in Pittsburgh, Pennsylvania

An online MBA candidate related the following fraud story: In 2008, an employee hoping to hide personal funds from the government hid the money in a company trust fund in order to gain personal government benefits. After ownership of the money would no longer affect receipt of those government benefits, the money was removed from […]