Yes, that’s definitely a drawback of that theory. The potential argument for would be that we ordinarily employ some degree of presumtpion that the business decisions of a corporation are rational (e.g., the “business judgment rule”), and that principle might justify starting with some belief that the transaction generated something of value for the corporation. Cynically: enhancement of its reputation.
Yes, that’s definitely a drawback of that theory. The potential argument for would be that we ordinarily employ some degree of presumtpion that the business decisions of a corporation are rational (e.g., the “business judgment rule”), and that principle might justify starting with some belief that the transaction generated something of value for the corporation. Cynically: enhancement of its reputation.