According to Adam Smith's Invisible Hand Principle, Productive Actions That

question 84

Multiple Choice

According to Adam Smith's invisible hand principle, productive actions that promote the general welfare of society will be undertaken when

• A) political representatives are elected democratically.
• B) competitive markets direct the actions of self-interested individuals.
• C) the selfish instincts of individuals are controlled.
• D) workers are able to organize and develop strong unions.

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Definitions:

Internal Controls

Procedures and mechanisms implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Fraud

Intentional deception made for personal gain or to damage another individual.

Sarbanes-Oxley

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures, made in response to financial scandals.

Public Confidence

The level of trust and belief that the general public has in the stability and integrity of a financial market, institution, or economy.