The Going-Concern Assumption States That The

question 51

Multiple Choice

The going-concern assumption states that the:

• A)company will always maximize the profit for shareholders.
• B)company is not expected to go out of business in the near future.
• C)company is a separate concern from the shareholders.
• D)company's results will be reported in a consistent manner from period to period.

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Definitions:

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled.

Ethical Failures

Incidents or behaviors that violate moral principles, often resulting in harm or disadvantage to individuals, groups, or organizations.

Scandals

Events or actions that cause public outrage or shock due to perceived ethical, legal, or moral infractions.

Discretionary Responsibility

The voluntary obligation or duty of an organization to contribute to the welfare of the broader community.