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Rainbow [258]
3 years ago
12

Absent government regulations to guard against​ fraud, why might top managers deceive investors about the true financial condi

tion of their​ firms?Top managers might want to deceive investors about the true financial condition of their firms​ _____a. to hide liabilities that should be listed on the balance sheet to keep the firm's stock price upb. to inflate profits to enhance compensation tied to the firms profitablityc.to reduce cost of expensive external auditsd. both a and b​e. all of the above
Business
2 answers:
Colt1911 [192]3 years ago
6 0

Answer:

D) both a and b

  • a. to hide liabilities that should be listed on the balance sheet to keep the firm's stock price up
  • b. to inflate profits to enhance compensation tied to the firms profitability

Explanation:

Top management has a fiduciary duty with the corporation and its shareholders, but that doesn't mean that they will always follow their duties and even obey the law (e.g. Enron). Two of the main reasons why top management may try to deceive both regulating agencies and shareholders is to artificially keep the stock prices up, and as a result of this they will generally earn huge bonuses and other compensation tied to both the corporation's profitability and stock price.

To be honest the main reason is the second one (earn huge bonuses), but without the first one it is impossible to achieve their goal.

Inessa [10]3 years ago
5 0

Answer:

The correct answer to why top managers might want to deceive investors about the true financial condition of their firm is option E) all of the above

Explanation:

The aim of management is to ensure that the company is profitable in order to increase its value and investment worthiness.

However, sometimes, they fall short due to internal and external factors that reduce profitability and increase liabilities. When this occur, the account books will show the unfavorable numbers. A deficit situation reflects negatively on the stock price and when shareholders are not getting a good return on their investment, they usually liquidate their shares and invest elsewhere.

To avoid that from happening, Top Managers usually hide liabilities that should be listed on the balance sheet to keep the firm's stock price up, inflate profits to enhance compensation tied to the firms profitability to reduce cost of expensive external audits.

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liberstina [14]

The advertisement is AN OFFER.

 

<span>Having stated that Jena chairs are marked down by 20 percent to $110, the advertisement then states that the  first six people to purchase a Jena chair on May 20 will receive an additional 20 percent off and a free seat cushion. </span>

6 0
3 years ago
A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement
Y_Kistochka [10]

Answer:

Noise

Explanation:

Noise is defined as any factor that interrupts communication process. It is anything that distracts the reader or listener from comprehending a message that is been passed across. It serves as a barrier to the communication process. In this case, the barrier to communication for the reader is a loud sound which is a factor of noise. Noise can either be a physical sound like in this case or a mental disturbance coming from the brain.

7 0
3 years ago
Sylvio purchased an apartment building as an investment in January 2008 for $383,500 and sold it for $475,000 in 2014. He report
Romashka [77]

Answer:

Hi there!!

$159,936

Explanation:

Sales proceeds                                                $475,000

Less: book value

 Cost                                       $383,500

 Accumulated depreciation <u> $(68,436)   </u>      <u> $315,064  </u>

Gain                                                                  $159,936      

Since Sylvio has maintained its investment for more than a year, the tax law allows reducing the tax on capital gain although the form of calculation of the profit is the same as for common cases.

In this case tax rate drops from 39.6% to 20%.

3 0
3 years ago
he nature of B2B markets requires ________. Group of answer choices companies to focus primarily on selling products that end up
vladimir2022 [97]

Answer:

a more personal relationship between the buyer and seller than in B2C markets

Explanation:

B2B (business-to-business) is a marketing strategy that deals with meeting the needs of other businesses, by selling products or services to the organizations for resale to other consumers, used in production of goods or for the operation of an organisation.

B2B (business-to-business) model focuses on facilitating sales transactions between businesses.

Under the B2B, the producer sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.

On the other hand, the B2C market involves businesses selling their goods and services directly to the end consumers or users for personal use.

The nature of B2B markets requires a more personal relationship between the buyer and seller than in B2C markets.

6 0
3 years ago
(a) Argue whether or not a firm should continue production if its MR is lower than its AVC. (b) Support your argument with expla
Delvig [45]

Answer: A firm should not continue production when its MR is lower than its AVC.

Explanation:

The goal of every firm is to minimize cost and also maximize profits and therefore the firm will operate at the output level where the marginal revenue and the marginal cost equates.

A firm should not continue production when its MR is lower than its AVC. Here, the firm will incur a higher loss during production as producing will not offset the variable cost. Therefore, it's better to shut down.

4 0
3 years ago
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