GeoTransmit,a large multinational telecommunications company,decided to hide the extensive debt and losses it was accumulating from its investors.Its fraudulent accounting behavior was eventually discovered,however,and the company went bankrupt.Which of the following is true of GeoTransmit and its stakeholders?

Question

Quizplus · Accepted Answer

The different stakeholders, such as investors, employees, and creditors, will be affected differently by the bankruptcy of GeoTransmit. Investors may lose their investments, while employees may lose their jobs, and creditors may not be paid back. The impact on the economy will depend on the size and importance of GeoTransmit in the industry it operates in. GeoTransmit's decision to hide its losses from investors was unethical as it violated the trust of its stakeholders and led to financial losses for them.

GeoTransmit,a Large Multinational Telecommunications Company,decided to Hide the Extensive Debt