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Which of the following is NOT an example of a situation where earnings management (EM) is more likely? 1. When there has been a change

Which of the following is NOT an example of a situation where earnings management (EM) is more likely?

1.

When there has been a change in the firms management

2.

When the firm is in play as a takeover target

3.

The firm conducts all of its business with unrelated parties

4.

The firm has very low positive earnings

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