Why Is the Validity and Reliability of Financial Disclosures of Limited

question 15

Multiple Choice

Why is the validity and reliability of financial disclosures of limited importance in the People's Republic of China (PRC) ?

• A)Chinese investors look for long-term stock price gains, which are not based on fundamental company data.
• B)The government owns all of the corporate stock traded in the PRC.
• C)Most of the stock purchased in the PRC is held for only a short period of time.
• D)Most of the stock is rated by the government of the PRC in terms of its quality.

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Definitions:

Nadler-Tushman Model

A framework used in the field of organizational dynamics, it outlines how various aspects of an organization interact and how changes in one area can lead to changes in others.

Anticipatory Changes

Changes that are made in preparation for future events, trends, or potential disruptions, aiming to minimize negative impacts and leverage opportunities.

Re-creation

The act of recreating something, either for the purpose of restoration or as a means of producing something new based on an existing model or design.

Nadler-Tushman Model

A framework for diagnosing organizational behavior that focuses on the dynamics between the organization's structure, tasks, corporate strategies, and the external environment.