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Why Do Companies Issue Press Releases When Executives Depart That

question 46

Essay

Why do companies issue press releases when executives depart that indicate the executives are leaving to spend more time with their families?   What are the ethical issues in issuing such statements if they are not true?


Definitions:

Contra-Liability Account

An account that reduces the amount of a liability, often used to record discounts or allowances that decrease the total amount owed by a company.

Cash Inflow

The cumulative sum of funds flowing into a company, usually originating from its operations, investments, and financial activities.

Semiannually

Occurring twice a year, typically every six months.

Effective-interest Method

A technique used in finance to calculate the actual interest rate on a bond or loan, taking into account the effect of compounding over the period.

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