Interpublic Interpublic, the World's Third-Biggest Marketing Services Group, Informed the SEC

question 41

Multiple Choice

Interpublic
Interpublic, the world's third-biggest marketing services group, informed the SEC that it "had found accounting errors resulting from incompetence as well as falsified books and records, violations of the laws and company policies, and inappropriate customer charges" that required it to restate its earnings for every year in the decade. Interpublic is guilty of overstating both its expenses and its revenues in its earning reports. Interpublic blames its faulty revenue reporting on "inadequate procedures for review of customer contracts." This fraudulent activity will more than likely result in a default on the company's debt and the loss of its stock market listing.
-Refer to Interpublic. Which traditional management function was Interpublic not using effectively prior to its discovery of fraudulent activities?

• A) implementation
• B) goal-setting
• C) control
• D) suboptimization
• E) benchmarking

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Definitions:

Treat Fairly

The practice of acting in a just and unbiased manner towards individuals or groups.

Expert Power

A form of influence derived from possessing knowledge or skills in a particular domain that others need or value.

Trust

The reliance on the integrity, strength, ability, or character of a person or thing, which is crucial for building and maintaining social and professional relationships.

Easy-to-Understand Language

Language that is clear, straightforward, and accessible to a wide audience, minimizing the use of jargon or complex terms.