Everything's "Fine"ance!
Too much of this on financial statements may alert investors. Some bad acting companies hide this in convoluted transactions with their subsidiaries
What is debt?
Hailed as a genius this CEO dropped out of college at 19 to make a product they’d been advised wasn’t scientifically possible.
Who is Elizabeth Holmes?
This company created $70 billion in fictitious value, applying mark-to-market accounting in a high stakes financial shell game.
What is Enron?
Between black and white - In complex systems, wrong-doing is often done by manipulating this area found in this area
What is the grey area?
Her voice and Steve Jobs wardrobe should have told us something was up.
Who is Elizabeth Holmes?
This sudden change to a company’s financial statements may alert investors of potential issues.
(Multi-answer)
What is an unexplained change in auditors?
What is a sudden change in accounting policies?
What are write-downs?
This poster child for ponzy schemes had excessive influence over his company’s operations (a classic leadership red flag)!
Who is Bernie Madoff?
An employee exploited this company’s organizational complexity and caused a public scandal when he lied about his work.
What is the New York Times?
Often found on farms, companies with lots of these are perfect for potential wrong-doing.
What are silos?
This company’s board of directors was made up of former senior government officials with no relevant expertise.
What is Theranos?
This three-letter acronym is a commonly used way of obfuscating shady business dealings
What is an SPV?
This CFO won awards for capital structure management, while using complex financial structures to hide debt, inflate profits, and pay himself tens of millions.
Who is Andy Fastow?
This medical tech company had a $9 Billion valuation but no FDA approval for their product
What is Theranos?
This term describes how one process in an organization can cause a chain reaction and spread through the rest of the org.
What is tight coupling?
Washing machines, driverless cars, and cash registers have this in common.
What is convenience offset by complexity, or a Faustian Bargain?
This accounting policy allowed Enron to report financial forecasts instead of cash
What is mark-to-market?
This common red flag can be described as “Leadership making bold public claims about the company/product without evidence“
What is extreme lying?
This company helped Enron raise billions of dollars to fuel its operation, being considered an enabler of Enron’s fraud.
What is Merril Lynch?
This web of activities and enabling technology makes the average consumer more susceptible to hacking than they realize.
What is the internet of things?
Despite being a utility company, no one questioned this company when they shifted from a natural gas distributor to a virtual marketplace.
What is Enron?
Excessive use of complex financial products, like these, are red flags for potential wrong doing.
What are derivatives products?
His articles may have been compelling, but they were also fiction.
Who is Jayson Blair?
This company recalled 1.4 million vehicles and issued USB keys to close backdoor gaps in dashboard software, making vehicles subject to remote hijacking.
What is Chrysler?
A three-word phrase describing a company that is reliant upon a charismatic CEO.
What is the One Man Rule?
This idiom can describe many indications that something is amiss in a company, from exclusive interviews at a newspaper, or innovative medical testing.
What is “too good to be true”?