Disclosure Frauds Occur Through Misrepresentations About the Company or Through

question 3

Multiple Choice

Disclosure frauds occur through misrepresentations about the company or through what other intentional act?

• A) Omissions in the footnotes to the financial statements
• B) Falsely increasing sales
• C) Creating off-balance sheet accounts
• D) Conducting related-party transactions

---

Definitions:

Creative Thinking

The ability to think in novel and unconventional ways in order to come up with unique solutions to problems or to generate original ideas.

Dominant Response Tendency

The inclination to respond in the most familiar or likely way in any given situation, especially under stress or pressure.

Objective Power

Refers to the actual, measurable ability of an individual, group, or organization to influence or control the actions of others, regardless of perceptions.

Deindividuation

A psychological state characterized by decreased self-awareness and a diminished sense of personal responsibility, often occurring in group settings.