You Are Responsible for the Prison System of a Large

question 75

Essay

You are responsible for the prison system of a large state on the west coast, which is deeply immersed in a scandal. A prison warden who, you are chagrined to discover, was also a sex addict, allowed himself to be used by several inmates, who planned and successfully executed an escape. Now, there is a massive tunnel system to fill and an institutional corruption to address. What systems will you put in place to reform your prisons?

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not have full control.

Bonds Payable

Long-term liabilities representing borrowed funds which the company is obligated to repay to bondholders at a specified future date.

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is issued at less than its face value.

Equity Method

A method where an investment is initially recorded at cost and subsequently adjusted for the investor's proportionate share in the net assets of the investee, recognizing income or loss.