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Firms are subject to political costs when: they are quite small and have little political influence. they choose accounting policies that best reflect the performance

Firms are subject to political costs when:

they are quite small and have little political influence.

they choose accounting policies that best reflect the performance of the firm.

they record high profits and share those profits in the form of increased wages.

they are highly visible, in the media or other arenas, often as a result of high profits.

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