Which of the Following Is Said to Be an Incentive

question 26

Multiple Choice

Which of the following is said to be an incentive for senior managers and directors to remain uninformed about illegal activities happening in large corporations?

• A) Lack of contact with management leaves workers feeling happier.
• B) Courts have not imposed a duty on directors to uncover corporate wrongdoing.
• C) The modern corporation is far less criminogenic.
• D) Corporations with more than 50 employees do not require the same regulation as smaller companies.

---

Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or the rights to ownership (derivatives).

Fair Value

An estimated market value of an asset or liability, reflecting current market conditions rather than historical cost, used in financial reporting.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Equity Interest

Ownership interest in a company, usually in the form of stocks, representing a share of the earnings and assets of the business.