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Which of the following statements is CORRECT? Select one: a. If someone deliberately understates costs and thereby causes reported profits to increase, this can cause
Which of the following statements is CORRECT? Select one: a. If someone deliberately understates costs and thereby causes reported profits to increase, this can cause the price of the stock to rise above its intrinsic value. The stock will probably fall in the future. Both those who participated in the fraud and the firm itself can be prosecuted. b. If a lower level person in a firm does something illegal, such as understating costs and thereby artificially increasing profits, only because he or she was ordered to do so by a superior, the lower level person cannot be prosecuted but the superior can be prosecuted. c. The bankruptcy of Enron Corporation, and the fraud committed by some of its officers, was the focus of news stories, but it did not lead to any important changes in business practices. d. There are many types of unethical business behavior. One example is where executives provide information that they know is incorrect to outsiders. It is illegal to provide such information to federally regulated banks, but it is not illegal to provide it to shareholders because they are the owners of the firm
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