The second corporate governance issue is that under-reporting remuneration. This issue is regarding the act of showing a low salary given to the executive members in the organization on what is received by them. The top management will show a low payroll for themselves while their pockets are filled with the profits earned from other party. This shows the fraud is done to win the confidence of the employees and investors to assure them that the executives are re-investing many profits for the purposes of business expansion and strength rather than focusing on self-benefits.Describe how to minimize the occurrence of the above corporate governance issues by explaining ONE (1) of the available corporate governance models in terms of its application

Under reporting is the deliberate act of disclosing less income or revenue than was actually…

Answered: The second corporate governance issue…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The second corporate governance issue is that under-reporting remuneration. This issue is regarding the act of showing a low salary given to the executive members in the organization on what is received by them. The top management will show a low payroll for themselves while their pockets are filled with the profits earned from other party. This shows the fraud is done to win the confidence of the employees and investors to assure them that the executives are re-investing many profits for the purposes of business expansion and strength rather than focusing on self-benefits.

Describe how to minimize the occurrence of the above corporate governance issues by explaining ONE (1) of the available corporate governance models in terms of its application

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