Fraud and Financial Malpractice as A Leading Factor in Business Failure

Fraud and Financial Malpractice as A Leading Factor in Business Failure

DEFINITION OF DISTRESS/FAILURE OF A CORPORATION

Failure of a corporation can be viewed from many perspectives, according to Frcar (1990) Economic failure of a corporation refers to a situation where a firm’s net rate of return on investment, adjusted for risk is significantly lower than the prevailing rate of interest while legal failure refers to a period or situation when the assets of the company are not sufficiency to meet the legally enforcement claims of its creditors. Technical insolvency on its own describes a situation in which a firm finds itself such that it is unable to meet its current obligations even though its total while bank raptly in an equity sense refers to a state where a firm’s total liabilities has outstrip its total assets” [Read more…]

Fraud – Prevention of Fraud in Banking Industry

Fraud – Prevention of Fraud in Banking Industry

Fraud  – The question of what is fraud is, insignificant in this report because of inexplicit definitions given to fraud. In tow quantities sense, fraud means cheating, swindling or deceptive/Rick. (IKPE DENNIS P.14). some legal experts have also defined fraud as “an act or course of deception deliberately practiced to gain unlawful or unfair advantage to the detriment of another professor fatherland, [Read more…]