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In Mastec Advanced Technologies,26 Service Technicians Were Fired After Appearing

question 20

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In Mastec Advanced Technologies,26 service technicians were fired after appearing on a television news show to complain about their employer's instructions about how to persuade customers to install phone connections for their satellite television service,and the charge-backs to employees' pay if they did not procure such connections.Phone connections were not necessary for the service to work,but the company earned more money if phone connections were installed.Regarding the terminations,the court ruled:


Definitions:

SEC

The U.S. Securities and Exchange Commission, which is responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

Revenue Recognition Irregularities

Deviations or non-compliance from standard accounting practices in acknowledging revenue, which can lead to misstated financial reports.

Negative Earnings

A financial situation where a company's expenses exceed its revenues, leading to a net loss in its income statement.

Prop Up Earnings

Tactics used by companies to artificially inflate or support their reported earnings per share (EPS) without a real increase in profitability.

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