In a modern corporation,the very nature of corporate structure gives managers the opportunity to abuse and misappropriate corporate resources owned ultimately by shareholders.

Question

Quizplus · Accepted Answer

Sometimes, managers embezzle corporate money or abuse expense accounts. At other times, they misrepresent the financial condition of the corporation to exercise stock options, obtain huge bonuses, or prop up loans they have secured with company stock. Because the very nature of corporate structure gives managers the opportunity to abuse and misappropriate corporate resources owned ultimately by shareholders, ethical business practice is made more important yet more difficult.

In a Modern Corporation,the Very Nature of Corporate Structure Gives