Which of the Following Is a Reason That the FASB

question 53

Multiple Choice

Which of the following is a reason that the FASB should closely watch the lobbying behavior of free riders?

• A)Responding to the interests of free riders could lead to an underproduction of accounting information.
• B)Free riders claim to be acting in the public interest but actually make the market less competitive.
• C)Free riders are not affected by accounting regulation.
• D)Free riders do not have the direct economic interests in information production that others have.

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Definitions:

Withdrawn

The act of pulling back or removing a statement, offer, or proposal previously put forward.

Closely Held Corporation

A corporation that does not sell stock to the general public.

Majority Shareholder

An entity or individual that owns more than half of the shares in a company, giving them significant control over the company's decisions.

Duty

An obligation, often legal or moral, that an individual or entity is bound to fulfill towards others.