Related-Party Transaction

Categories: Ethics/Morals

You own a 40% interest in a company that offers kale-juice enimas. You also own a 90% interest in a kale farm. Not surprisingly, you push your enema firm to buy its kale exclusively from your farm.

That situation epitomizes a related-party transaction. It's a situation where two already-connected parties make a deal. It comes up often when the same ownership group has interests in several different related ventures.

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head of a corporation's Audit Committee, to be certain that the

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accounting process is handled fairly, objectively, inclusively and thoroughly [boss overseeing worker]

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does the obligation start and stop? Should fiduciaries be held to a higher

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