Answer question 2

e l list of business risks that NewSkin likely will face as a start-up biotech firm. b. Choose two of these risks and consider how they might affect your decision to accept NewSkin as a client. DISCUSSION CASE LO 4-4, 4-5 4-33 Koss Corporation: How $34 Million Disappeared. Koss Corporation is a pub- licly traded company that designs and sells stereo headphones. The Koss family controls a majority of the Company's stock. On November 17,2010, Sujata "Sue" Sachdeva, the former Vice-President of Finance was sentenced to 11 years in prison for embezzling $34 million from the Company. Her attorney claimed that she was a shopaholic. From 1992 to 2009, Sachdeva was the Principal Accounting Officer, Secretary, and Vice-President of Finance at Koss. As a result of the embezzlement. Koss Corporation was required to restate its financial statements for 2008,2009, and the first quarter of 2010. Sachdeva used the embezzled funds to sustain a lavish lifestyle including pur- chasing a vacation ownership interest in Hawai, a Mercedes Benz, and other auto mobiles. She also used the proceeds to pay for luxury travel and numerous personal items, including luxury clothing, furs, designer shoes, jewelry, and art. One neighbor