F&C INTERNATIONAL, INC.
Over two centuries, the Fries family of northern Kentucky and southern Ohio built a dynasty of sorts in the flavor industry. Alex Fries, a German immigrant with a background in chemistry, settled in Cincinnati during the early nineteenth century and a few years later established a flavor company. Throughout the nineteenth and twentieth centuries, Fries and his descendants owned, operated, or oversaw several flavor companies, the last of which was F&C International. In the early 1990s, F & C’s chief executive, Jon Fries, orchestrated a large-scale financial fraud that proved the undoing of the company and the family’s proud history …show more content…
Suggested Solutions to Case Questions
1. Chief executive officer: In most companies, the CEO ranks as the ultimate decision maker within the firm. This is where the “buck stops” in terms of long-range policy issues facing a company. Granted, in most companies, the CEO seeks and obtains input from fellow officers, the board of directors, and various other parties before making decisions on important matters facing a company. Independent auditors may occasionally question a client’s CEO regarding key accounting or financial reporting issues. Generally, though, auditors will direct their questions to lower-level company officials