Proponents of the Free Market Approaches to Accounting Regulation Use

question 8

Multiple Choice

Proponents of the free market approaches to accounting regulation use Adam Smith (1937) as a basis for support.Which of the following is not associated with Adam Smith's writings on the workings of the free market?

• A) The concept of the 'invisible hand' to guide allocation of resources for individuals and, as a result, does so for the market as a whole.
• B) No government intervention is necessary, as the free market can optimally allocate and distribute resources.
• C) Individuals pursuing their own self-interest results in resources finding their way to their most productive use for the economy as a whole.
• D) All of the given options are correct.

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Definitions:

Performance Deficiency

The gap between actual performance and the expected or desired performance in a work setting, often indicating the need for improvement.

Useful Information

Data that is relevant, accurate, and timely, which supports decision-making processes.

Accurate

The quality of being correct and precise without errors.

Reliable

The quality of being consistently good in performance, providing trustworthy results over time.