Question: Many companies publicly describe their performance using terms such as EBITDA or earnings purged of various expenses because they believe these terms more effectively reflect

Many companies publicly describe their performance using terms such as EBITDA or earnings purged of various expenses because they believe these terms more effectively reflect their companies perfor-mance than GAAP-defined terms such as net income. What ethical issues might arise from the use of such terms and what challenges does their use present for the governance of the company by stockhold-ers and directors?

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