For Small Firms, Shareholders and Management May Be One and the Same.But

question 10

Multiple Choice

For small firms, shareholders and management may be one and the same.But for large companies, separation of ownership and management is:

• A)a practical necessity.
• B)not a necessity.
• C)a liability.
• D)a fraudulent move.

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Definitions:

Moral Development

The growth in an individual's understanding of the principles of right and wrong, influenced by cultural, social, and personal factors.

Whistle-Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization by an insider.

Accounting Records

Documents and files that systematically record financial transactions and positions of a company or individual.

Tax Liability

The total amount of tax that an individual, corporation, or other entity is legally obligated to pay to a tax authority.