Which of the Following Will Satisfy the Definition of a 'Constructive

question 1

Multiple Choice

Which of the following will satisfy the definition of a 'constructive liability',as outlined in the IASB Conceptual Framework?

• A) A decision by management to carry out maintenance over the next two years
• B) A public offer to repair a defective good, even if it is out of warranty
• C) A parent company's guarantee to meet the debts of a subsidiary entity if the subsidiary itself cannot pay them
• D) All of the given options are correct.

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Definitions:

Escalation of Commitment

Is a pattern of behavior in which an individual or group continues to invest in a decision despite evidence of its ineffectiveness or the likelihood of negative outcomes.

Perceptual Defense

The psychological mechanism by which individuals protect themselves from information or stimuli perceived as threatening.

Decision Maker

An individual or group responsible for making choices that will impact the organization.

Visuals

Graphic elements such as charts, graphs, and images used in communication materials to supplement text, making information easier to understand and more engaging.