Which of the Following Best Describes Why Firms Produce Financial

question 64

Multiple Choice

Which of the following best describes why firms produce financial statements?

• A)to use as a tool when planning future investments within the firm
• B)to provide a means of enticing new investors to a firm
• C)to provide interested parties,both inside and outside the company,with an overview of the short and long term financial condition of a business
• D)to show what activities the company has undertaken in the previous financial year,and what activities are planned for the near future

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Definitions:

Positive Reinforcement

A technique in behavior management that involves giving a reward to encourage the repetition of a desired action.

Power

The ability or capacity to do something or act in a particular way, often related to control or influence over others.

Control

The power to influence or direct people's behavior or the course of events.

Narcissism

A personality trait characterized by excessive self-interest and a lack of empathy for others.