Explain the SLK-BNP deal and why it was important to Nick Leeson
What will be an ideal response?
The SLK-BNP deal was Leeson's most flagrant falsification scheme. It occurred in
January 1995 . When Coopers and Lybrand (C&L), Barings' external auditor, discovered that ¥7.78 billion (about $77.8 million) was missing from Barings Bank's balance sheet, Leeson invented the story that the missing funds were because of an erroneous payment that Barings made on an over-the-counter trade that he brokered between Banque Nationale de Paris (BNP) and Spear, Leeds, and Kellogg (SLK).
Actually, Leeson had used the ¥7.78 billion to pay for his losses in the 88888 Account. He covered his illicit use of the funds by booking a fictitious sale of options to bring the 88888 Account back to zero. Because the transaction was fictitious and no cash inflows resulted from the transaction, when SLK went to check at Citibank for the funds, they were not there.
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Identify the risk factor in decision support systems that lead to ethical issues.
A. Errors in personal data B. Lack of sensitivity tests C. ?High processing costs D. ?Real time data processing
An intensive distribution strategy is most suitable for which consumer product category?
A) convenience products B) unsought goods C) shopping products D) luxury products E) materials and supplies
What is the difference between information systems (IS) and information technology (IT)?
What will be an ideal response?
Grid Tool Company makes and sells tools and other hardware supplies. To cover injuries to consumers if the products prove de¬fective, Grid Tool should obtain
a. disability insurance. b. health insurance. c. liability insurance. d. life insurance.