Question

Ted Simpson, vice president of Morris Travels, is not supportive of his company’s recent move toward strengthening its corporate governance practices. Ted believes that there is no good reason for the efforts because the company is privately owned and is unlikely to become a public company in the near future. On the other hand, Jerry George, the company’s founder and chairman of the board, believes the company should invest more time and effort in its governance practices.

Required
Explain to Ted why the company should care about good corporate governance practices.



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  • CreatedMarch 11, 2015
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