Deterrence Requires Which of the Following Factors

question 26

Multiple Choice

Deterrence requires which of the following factors?

• A) legitimate opportunities and serious penalties
• B) perceived threat and rational decision-making
• C) quick positive feedback and slow negative feedback
• D) all of the above
• E) none of the above

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Definitions:

Significant Influence

The ability to be involved in the financial and managerial policy decisions of an investment without having controlling authority over those policies.

Fair Value Through Profit or Loss

An accounting approach where financial assets are valued at their current market price, with changes in fair value reported in the profit or loss statement.

Journal Entries

The record of financial transactions in the books of accounts in chronological order, showing the accounts and amounts debited and credited.

Significant Influence

The power to participate in the financial and operating policy decisions of a business, without controlling it.