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When a public corporation overinflates its financial condition, it can lead to a false sense of security for both employees and investors. Employees may feel confident in their job stability and potential for raises or bonuses, only to face layoffs or reduced benefits when the true financial picture is revealed. For investors, inflated reports can result in misguided investment decisions, leading to significant losses when the company's stock price corrects itself. Ultimately, this lack of transparency can erode trust and damage the corporation's reputation in the long run.

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2mo ago

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