Which of the Following Penalties Will Result If a Company

question 24

Multiple Choice

Which of the following penalties will result if a company deliberately breaches one of the specific prohibitions in the ACL?

• A)The company must pay a maximum fine of $1.1 million.
• B)The company's directors and employees will be imprisoned for 1 year.
• C)The company will be liquidated.
• D)The company must not trade for a period of one year.

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Definitions:

Net Operating Income

A company's revenue minus its operating expenses, excluding tax and interest, representing the profit from core business operations.

Sales Increase

A rise in the amount of products or services sold by a business within a specific period, indicating growth or an uptick in market demand.

Degree of Operating Leverage

A financial ratio that measures how sensitive a company's operating income is to changes in revenue, indicating risk level.

Variable Expenses

Costs that vary in total in direct proportion to changes in an activity level or volume, such as materials and labor costs.