Considering Current Laws That Deal with Misstatements of Financial Results,which

question 69

Multiple Choice

Considering current laws that deal with misstatements of financial results,which of the following statements is correct?

• A)Managers found guilty can escape paying fines if they declare bankruptcy.
• B)Managers can be sentenced to maximum jail terms of up to 20 years for each violation.
• C)Managers found guilty may keep any bonuses or profits from the misrepresentation if their fines are less than such bonuses or profits.
• D)Whistleblowers who secretly submit concerns about questionable accounting practices will be fired.

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Definitions:

Command Systems

Economic systems where production, investment, prices, and incomes are determined centrally by a government.

Pure Capitalism

An economic system characterized by private ownership of the means of production, minimal government intervention, and the free market determining prices and distribution of goods.

Communism

A political and economic ideology advocating for a classless society in which the means of production are owned collectively.

Market Economy

An economic system where economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses with minimal government intervention.