Why Is It Important to Be Honest in an Informational

question 39

Multiple Choice

Why is it important to be honest in an informational report when you have to share bad news?

• A) Failure to be honest in the short term could lead to more problems in the long term.
• B) Being honest is the ethical thing to do.
• C) Sponsors or supervisors of a project have a right to know what is going on.
• D) All responses are correct.

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Definitions:

Ending Inventory

The combined worth of sales-ready goods at the close of a financial period.

Goods In Transit

Items that are in the process of being transported from one location to another, not yet reached the buyer or final destination.

Gross Profit

The financial metric that subtracts the cost of goods sold from sales revenue, representing the amount a company makes after covering the direct costs associated with production.

Selling Expenses

Costs associated with marketing and selling a company's products or services.