Under the Efficient Markets Hypothesis, for News About a Company's

question 26

Multiple Choice

Under the efficient markets hypothesis, for news about a company's prospects to have a large impact on the price of the company's stock the news must

• A)have an impact on the company's profitability in the short term.
• B)have an impact on the company's profitability in the long term.
• C)significantly increase the likelihood that the company will go bankrupt.
• D)significantly affect the liquidity of the company's stock.

Identify the principles of developing an effective accounting information system.

Understand the importance and process of journal entries in accounting.

Grasp the concept and purpose of a general ledger and subsidiary ledgers.

Comprehend the essential principles of designing and developing an accounting information system, including cost effectiveness and flexibility.

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Definitions:

Discretionary Responsibilities

Obligations that an individual or organization chooses to undertake out of ethical or moral principles rather than because of legal requirements.

Economic Responsibility

The obligation of an organization or individual to act in ways that benefit the economic well-being of society.

Ethical Dilemma

Situations where one is faced with choosing between two morally correct but contradictory actions, making it difficult to decide the right course.

Ethical Dilemmas

Situations where a choice must be made between two or more conflicting moral principles or outcomes.