Question
You must label each answer with the number of question. Each question must have at least three sentence answers. There is no maximum sentence, use
You must label each answer with the number of question. Each question must have at least three sentence answers. There is no maximum sentence, use as many as you wish to thoroughly answer the question. All answers must be complete sentences using proper grammar and spelling. Sherrie Software was a relatively new tech company. To keep attracting investors, Hawk, the President had to show year-to-year revenue growth. When his normal revenue streams stalled, he resorted to the tried-and-true channel stuffing technique. First, he improperly recorded shipments to his distributors as sales revenue; these shipments far exceeded the market demand for his products. Then he offered the distributors large payments to hold the excess inventory instead of returning it for refund. Those payments were disguised as sales promotion expenses. He was able to show a considerable growth in revenues for two years running until one savvy investor group started asking questions. That led to a complaint filed with the SEC. The company is now in bankruptcy, and several criminal cases are pending. Requirements What factor may have tipped off the investor group that something was wrong? In what way would those investors have been harmed? If Allen had attracted enough equity capital, do you think he would have been able to conceal the scheme?
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