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What challenges use present for governance of company

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Reference no: EM132536897

Many companies publicly describe their performance using terms such as EBITDA or earnings purged of various expenses because they believe these terms more effectively reflect their companies' performance than GAAP-defined terms such as net income.

Question 1: What ethical issues might arise from the use of such terms, and what challenges does their use present for the governance of a company by stockholders and directors?

Reference no: EM132536897

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