In Addition to Ethical Practices, Management Has an Obligation to Maintain

question 31

Multiple Choice

In addition to ethical practices, management has an obligation to maintain a set of processes and procedures to assure accurate financial reporting and protection of company assets.This obligation arises because:

• A)Many groups have expectations of management.
• B)Management has a stewardship obligation to investors.
• C)Management has an obligation to provide accurate reports to non-investors.
• D)All of the above are reasons for the obligation.

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Definitions:

Inflationary Gap

The difference between the actual level of output in an economy and the output level needed to achieve full employment without inflation.

Budget Surplus

A situation where income or revenues exceed expenditures over a specified period of time.

Aggregate Demand

Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and time period.

John Maynard Keynes

A British scholar in economics whose contributions had a profound impact on how macroeconomics is understood and applied by governments.