All of the Following Tend to Be Rationalizations for Fraud

question 9

Multiple Choice

All of the following tend to be rationalizations for fraud except:

• A) We need to protect the shareholders and keep the stock price high
• B) All companies use aggressive accounting techniques
• C) The employee will be fired unless s/he goes along with the fraud
• D) We are correcting a temporary problem that will not exist in the future

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Definitions:

Time Inconsistency

The tendency of people to change their plans or decisions over time in ways that they might not have predicted or considered optimal originally.

Zero Inflation

A situation in which prices remain constant over time, indicating no general increase in the level of prices in an economy.

Nobel Prize

Prestigious awards given annually across various categories, including Peace, Literature, and various sciences, recognizing significant achievements.

Government Expenditures

Total spending by the government on goods, services, and public projects, including salaries of public servants, social programs, and infrastructure projects.