Which of the Following Statements Is True Regarding Ethical Issues

question 48

Multiple Choice

Which of the following statements is true regarding ethical issues accompanying budgeting?

• A) Conflicts of interest do not arise when employees are asked for input to help establish a budget.
• B) Easy target incentives are eliminated through budgeting.
• C) The conflicts of biased budgeting can be avoided in a decentralized firm.
• D) If budget targets are difficult to meet, employees could turn to fraudulent financial reporting.

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Definitions:

Consequences

The outcomes or effects that result from a particular action or condition.

Divorce

A formal termination of a marriage through judicial or authoritative intervention.

Stanford-Binet

A standardized test that measures intelligence and cognitive abilities in children and adults.

Wechsler

David Wechsler was a psychologist who developed influential intelligence scales, such as the Wechsler Adult Intelligence Scale (WAIS) and the Wechsler Intelligence Scale for Children (WISC), for measuring human intelligence.