Excellent explanation, however, technically it does not constitute an “odd spot.” Rather, it represents a “100% acceptable and evident position” as it brings benefits to all stakeholders, from accounting to the CEO. Moreover, it is noteworthy that investing in services or leasing arrangements increases expenditure, resulting in reduced tax liabilities due to lower reported profits. Compounding this, the prevailing high turnover rate among CEOs diminishes incentives for making significant long-term investments.
In certain instances, there is also plain corruption. This occurs when a supplier offering services such as computer and server leasing or software, as well as company car rentals, is owned by a friend or family member of a C-level executive.