NAME : MUHAMMAD HARITH FADHILLAH BIN HAMZAH

I/D : 2019492308

CLASS: BA242 5B

Questions:

List the companies together with its modus operandi which able to attract the investors.

What we learn from these scandals?

1. Theranos

Theranos was an enterprise that had practical experience in blood testing. Elizabeth Holmes
is the organizer of Theranos. She guaranteed that she was raised with the longing to make
the world a superior spot. She professed to have the option to run more th an 240 tests,
regardless of the way that current blood testing innovation takes one vial of blood for each
symptomatic test. With just a solitary pinprick of blood, researchers can do everything from
check cholesterol levels to confounded hereditary investigations. Numerous in the business
were shocked by this idea. Clearly, each test burns-through a specific volume of blood. The
innovation was asserted as a robotized, minimal expense, and speedy to -carry out framework
that would change medication, furthermore, save experience the whole way across the world.
When the blood was drawn, it was set in a "nanotainer" and examined by Theranos' Edison
machine.

Thus, Theranos was set up on a premise of trickiness. Since the Edison machine didn't work
as expected from the outset. These contentions, as I would see it, instruct us that Theranos
ought to speak the truth about their innovation fizzling and that they were not using their own
innovation to execute most of their tests.

2. LUCKIN COFFEE

Luckin Coffee is an innovation organization that was established by Lu Zhengyao. He had a

yearning objective to abandon Starbucks in China by offering espresso to a country of tea
consumers since there would be an application. At the point when the asset supervisor
distributed an investigation report based on crafted by a large number of specialists who
followed deals and people walking through at different locales in China, the asset chief had
the option to draw in financial backers. Clients had given them in excess of 25,000 re ceipts.
Luckin expanded the quantity of things sold each day by 69 percent in the second from last
quarter of 2019 and 88 percent in the final quarter, as indicated by the research. It additionally
reached the resolution that the normal expense of things sold was lower than the organization
guaranteed.

Besides, we can gain from this present organization's embarrassments by trying not to put as
well much confidence in people around us, particularly dear companions. Thus, we'll find
ourselves detained in their grip.

3. WIRECARD

Wirecard was a german fintech firm who established by Markus Braun. From the video that I
have watched, the business as usual is when Wirecard entered the financial business in 2006.
They may deal with cash and issue charge cards in the interest of merchants.Wirecard's blend
of banking and non-banking exercises made it difficult to contrast it with its rivals. This
additionally assisted them with convincing financial backers to confide in refreshed budget
report variants.

Other than that, the center of the extortion was a little Dubai-based outsider acquirer called al-
Alam arrangements. Acquirers are the connection in the installments chain that gathers cash
from card backers and store it in the storekeeper's ledger. For every installment that acquirers
help root, vendors will typically haggle straightforwardly with acquirers to handle installments
for their sake. They charge an expense on paper. Al-Alam was one of Wirecard's important
resources which prepared billions of euros in installments across Europe, the Middle East,
and the United States. The monetary clocks called up the greatest clients of al- Alam.

In light of what we can gain from the embarrassments, the partnership was deficient in inward
control. They can possibly make their organization more presented to extortion. Also, the
association should have interior controls just as viable danger the board.

4. WORLDCOM

WorldCom was established by Bernie Ebbers and it's anything but a media communications
organization. From utilized by the usual way of doing things which can draw in the financial
backers when he
begun in 2000. He started grouping working costs as long haul capital ventures. These were
costs like rentals on telephone lines that were paid out to other telecom organizations. This
likewise gave WorldCom another $3.85 billion and turned their misfortunes into benefits of
$1.38 billion for 2001. Then, at that point, it is likewise caused world comes resources for show
up more important.

To sum up, we may gain from the embarrassments that happened in this partnership by seeing
time patterns in changes in income versus changes in profit estimated as indicated by
Generally Accepted Accounting Principles (GAAP). On the off chance that these figures show
a enormous and developing uniqueness, it's a clue that the administrators are messing with
them.

5. ENRON

Enron is a pipelines organizations who is consolidation with assistance by Jeff Skilling. With
the help of Jeff Skilling, a previous expert Enron changed itself into a merchant of energy
subsidiary agreements going about as a delegate between petroleum gas makers and their
clients. Enron before long ruled the market for flammable gas agreements and began to
produce tremendous benefits. The positively trending business se ctor of the 1990s assisted
with filling Enron's desires and added to its fast development. The organization was prepared
to make a business opportunity for anything that anybody was able to exchange. It exchanged
subordinate agreements for a wide assortment of wares counting power, coal, paper and steel
and surprisingly climate subordinates. A web based exchanging division Enron online was
dispatched during the website blast and the organization put resources into building a
broadband media transmission organization to work with rapid exchanging. From 1996 to
2001, Fortune magazine named Enron America's Most Innovative Company each year.

We may gain from these outrages that speculative agreements can't be depended upon to
create income in a company. Due to the business' imprint to-advertise bookkeeping plan,
these Enron benefits are recorded before the subordinate develops, which could bring about
a benefit allowance if the subordinate's fundamental instrument moves against the
organization.