Final answer:
Fraudulent financial reporting is often committed by management to mislead users of financial statements, whereas misappropriation of assets involves theft or misuse of a company's resources by employees. Both can have significant impacts despite being non-violent in nature.
Step-by-step explanation:
Fraudulent financial reporting and misappropriation of assets are two distinct types of fraudulent activities within a business setting. Fraudulent financial reporting is typically carried out by management with the intent to deceive financial statement users, such as investors, by providing an inaccurate depiction of a company's financial health and performance. On the other hand, misappropriation of assets involves the theft or misuse of a company's assets and may be perpetrated by employees at various levels within an organization.
One of the reasons we may consider financial crimes as less harmful than other types of crimes is due to their non-violent nature. However, the impacts of financial crimes like fraudulent financial reporting or misappropriation of assets can be significant and widespread, potentially affecting a large number of victims including employees, shareholders, creditors, and the economy at large.