Common examples: Warren Buffett used Berkshire's money to buy his own jet
Vince McMahon used WWE's money to buy his houses and Bob Johnson used BET's money to buy the Bobcats start them actually so once again can the chairman of a company use its money for his own personal gain?
2007-09-22 10:51:33 · 7 answers · asked by Jeremy M 2 in Business & Finance ➔ Corporations
Your mixing how they made money and the companies money. Basically Warren, Vince and Bob sold some shares of their companies tht they owned inorder to purchase the items they want.
They can not take "cash" from the company and buy a boat...
2007-09-22 14:30:49 · answer #1 · answered by AE N 5 · 0⤊ 0⤋
What you need to understand is the difference between public and private corporations. Public corporations have strict rules against managers and CEO's from using the company assets as a private ATM. Several CEO's have gone to jail for doing just that.
Private Corporations are a different matter. Since all the shares are held by one person or possible a family, they can pretty much do what they want. Of course if they squander the company's money they will soon be out of business.
2007-09-22 11:07:35 · answer #2 · answered by Dr. Wu 3 · 0⤊ 0⤋
The chairman if I have my stuff in my head right owns the company. Therefore for all practical purposes yes he can. However there are limitations and stipulations with how they spend.Sometimes they have CEO's and sometimes like with george stiembrenner yankee owner. He owned thembut had limited exposure to the day to day things because of sanctions.
2007-09-22 11:38:31 · answer #3 · answered by debbie f 5 · 0⤊ 0⤋
When Corporation money is used, the titles go into the name of the Corporation as the owner.
2007-09-22 11:08:14 · answer #4 · answered by Kat 2 · 0⤊ 0⤋
A business (barring non-profit) exists only to increase its worth, i,e. maximize profit, maximize assets and capital, minimize debt and expenses.
In short: increase gain above all else.
If the business is a sole proprietorship then business gain equals personal gain. The above mentioned examples are expenditures, liabilities. This negatively affects the business and thus negatively affects personal gain.
2007-09-22 11:40:26 · answer #5 · answered by shy_dove_01 1 · 0⤊ 0⤋
Absolutely not. Unless it is a sole propriatorship where the person is the sole owner and has only friends names as members -- like President , vice president , treasurer, etc.
2007-09-22 11:02:35 · answer #6 · answered by Moondog2277 3 · 0⤊ 0⤋
Don't forget the Playboy Mansion.
CEOs expect to be compensated. It may actually be a tax advantage to compensate them through perks rather than through cash payments.
2007-09-22 10:55:42 · answer #7 · answered by Ranto 7 · 0⤊ 0⤋