On the subject of off-balance accounting, they're legal and considered ethical. But what if the company forms a new corporation that builds a facility and then leases it back. I'm not sure how the new corporation formation effects the current company's stockholders so the question...from a legal and ethical standpoint and from the BOD and stockholders point of view, is forming a corporation to provide a leased facility good or bad?

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The formation of a new corporation to build a facility and then lease it back to the original company can be viewed from various perspectives Here are ... View the full answer