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Conflicts between partners, members, or shareholders arise for a variety of reasons: personality differences, payment of dividends, allegations that a co-owner has converted business assets to personal use, marital divorce, shift in the balance of power and control between younger and older partners, employment discrimination claims and disagreements over the future of the business among others.
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Any entity can and has been a target, even law enforcement agencies and jails and prisons, where inmates, correctional officers, teachers and senior staff have been caught in a variety of schemes to steal, corrupt, defraud, extort and improperly obtain or divert assets and use their influence for personal gain.
FORBES: How Do You Spot The Thief Inside Your Company?
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In his book, Unconventional Success: A Fundamental Approach to Personal Investment, Swensen recommends with all assets that investors use passive index mutual funds.
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If you are an entity with assets that can potentially be diverted, stolen, converted to personal use, or employees that can be corrupted, then you should consider the initiation of a confidential reporting system that provides a method for honest employees to report waste, fraud, and abuse.
FORBES: A Snitch In Time Can Save Employers a Lot of Money