Professor Linda DeAngelo found evidence suggesting that when the management of a company is ousted under fire,
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As an example, Circle K Corporation declared Chapter 11 bankruptcy and changed management during fiscal 1990. For the year, Circle K reported a reorganization and restructuring charge of $639 million, consisting primarily of write-downs of long-term assets. This contributed to a net loss for the year of $773 million, compared to average net income for the previous four years of about $40 million per year. Why might the new management of a company want to “take a bath” in its first year?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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