Which One of the Following Might NOT Be a Signal

question 58

Multiple Choice

Which one of the following might NOT be a signal of a lack of integrity in management?

• A) Frequent turnover of key financial personnel
• B) Frequent disagreements with previous auditors
• C) Frequent turnover of key internal audit personnel
• D) Prior criminal conviction of an assembly line foreman

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Definitions:

Decreasing Returns

A condition in economics where adding more input (like labor or capital) leads to progressively smaller increases in output.

Long-Run

A term referring to a period of time in economics during which all factors of production and costs are variable.

Short-Run

A period where at least one factor of production is fixed, and firms can only adjust the variable factors.

Diminishing Marginal Returns

A principle stating that as an investment in a particular area increases, the rate of profit from that investment, after a certain point, starts to decrease.