Question

what are the misconceptions or misuse of the concept of full disclosure principle?

what are the misconceptions or misuse of the concept of full disclosure principle?

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Answer #1

According to the full disclosure principle a business is required to disclose all necessary financial information to the people who are accustomed to reading the information. But sometimes when inside information gets disclosed outside it can be misused by the competitors and can cause harm to the company. The rivals can use the data against the company which can put financial plans and business growth at risk. When the information is more significant and there is a potential competitive disadvantage, the greater would be required by the business to keep information private for a longer duration.

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