In Which of the Cases Can You Identify the Potential

question 86

Multiple Choice

In which of the cases can you identify the potential for a free-rider problem?

• A)half-off sales at department stores
• B)voluntary payments for a smog reduction program (True Answer )Correct
• C)group projects where all members have clearly assigned tasks and are responsible for presenting their work
• D)cable Internet service

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Definitions:

Days' Cash

A measure of a company's financial stability, indicating how many days the company can continue to operate using only its available cash without needing additional income.

Year-end Value

The financial value of an asset or account as recorded at the end of the fiscal year, which is important for annual financial reporting.

Internal Controls

Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Sarbanes-Oxley Act

A U.S. federal law that aims to protect investors by making corporate disclosures more reliable and accurate.