Managers Often Are Accused of Making Accounting Changes in Order

question 42

Essay

Managers often are accused of making accounting changes in order to avoid regulation,to achieve compliance with debt covenants,to increase compensation through earnings-based bonus plans,or to smooth earnings.Managers may indeed believe that by increasing earnings,and thus increasing earnings per share,stock prices will increase.
Explain the relationship between attempts by managers to manipulate earnings through accounting changes and the efficient market hypothesis.

Describe Astroturf lobbying and differentiate it from genuine grassroots movements.

Explain pluralism and identify its characteristics and the critique regarding its democratic tendency.

Know the purpose and content of the Federal Register.

Define public interest groups and discuss their strategies and interaction with elites.

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Definitions:

Notice of Rejection

A formal notification indicating that an offer or proposal has been declined.

Revoke Acceptance

In contract law, the right of a buyer to reject goods after initial acceptance if they substantially fail to conform to the contract or because of a latent defect.

Nonconformity

The failure of a product or service to meet specified standards or expectations, typically resulting in a breach of warranty.

Cure the Defect

The process of correcting or fixing a flaw or error in a legal document or procedure.