1. In the Olympus case, Michael Woodford was abruptly fired on October 14, 2011, by the company’s executive board because of what the board cited as “management culture clash.” Explain what you think this statement means in the context of the facts of the case and our discussion about the role of culture in business operations.
2. Do you think the practice of “tobashi” is a form of earnings management? Why or why not?
3. Explain the ethical issues and corporate governance failings that contributed to the fraud at Olympus, including the role of the auditors.
4. What are similarities between the actions taken in the Olympus case and those of Enron with respect to its special-purpose-entities (SPEs)?