Commingling means treating the company’s money as if it were your own. In this c

Question

Commingling means treating the company’s money as if it were your own. In this case, the offending executives used Tyco’s business assets for their own personal gain. Tyco has done this by

Tyco bought all these things just to have personal gains and improve its personal conditions. Tyco uses this as a way to go around the system for its personal gains and by hiding true things or intentions of its executives. By doing this, they have created problems for themselves by gained attention from taxation authorities and SEC and other criminal investigations due to their fraudulent behaviors.

Then these all authorities start investigating the same and in the end they found some major ethical issues with the working of the company. Issues such as:-

Tyco’s case shows that commingling of assets made it easy for Kozlowski to use the company’s assets for personal needs. The company had programs that enabled Kozlowski to unethically use assets for personal gains. Kozlowski’s use of Tyco’s money was not just mere stealing of funds. It was also an exploitation of the weakness of the financial loopholes in the firm at the time of his leadership. Which is wrong, if you are leader or part of leadership team, there are lots of people depending upon you and you should not take such decision for your person benefits or gains.

Explanation / Answer

Explain the concept of commingling assets with respect to the Tyco case.

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