In Countries Such as the U

question 41

Multiple Choice

In countries such as the U.S., there is great demand for public disclosure of accounting information. What is the reason for this?

• A) Corporate management isn't trustworthy.
• B) Businesses rely heavily on financing through issuance of stock to the public.
• C) The American populace is better able to read financial statements than people in other countries.
• D) U.S. government officials are generally members of corporate boards of directors and can get all the information they require.

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Definitions:

Deductive

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification, highlighting similarities in some respects.

Inductive Generalization

A type of reasoning where conclusions about general rules are drawn from specific examples or cases.

Deductive Step

A reasoning process in deductive logic where a conclusion is logically derived from premises.