Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) Most financial statement frauds occur in large, historically profitable companies.
• B) Most people who commit management fraud are first-time offenders.
• C) An active board of directors or audit committee does little to deter fraud.
• D) Perpetrating fraud is much easier in an organization with democratic leadership, where the decision making is spread among several individuals.

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Definitions:

Manufacturing Productivity

A measure of efficiency in production, quantifying the output generated per unit of input used in the manufacturing process.

Qualitative Characteristic

Attributes that contribute to the usefulness of financial information in making decisions, including relevance and reliability.

Investment Analysis

The process of evaluating investment opportunities to determine their potential financial returns and associated risks.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work.