On the other hand if it was unknown that the company had misstated its earnings then the companies investors and creditors would assume the company was doing well and would invest more money into the company. What ethical issues says privateair, if any, arise when a company manages its earnings? There are many ethical issues that arise from this situation. The biggest issue is the fact that the company has flat out lied to its investors and creditors that have given them money and investments in hopes that it would be managed effectively. These investments are given to the company so it can grow and expand in hopes doing well and earning a profit.
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