Information regarding to future prospects
A) is rarely provided in annual reports.
B) is usually in the form of a narrative rather than in quantitative terms.
C) is not considered to be a threat from a competitive disadvantage point of view since all firms are required to disclose this information if they list on a stock exchange.
D) is not very high in the United States due to the investor orientation.

Question

Quizplus · Accepted Answer

Future prospects are usually discussed in a qualitative manner in the narrative section of annual reports, rather than in quantitative terms. Choice A is incorrect because some companies do provide information on future prospects in their annual reports. Choice C is incorrect because some companies may choose not to disclose future prospects or may do so in a limited form. Choice D is also incorrect because the level of future prospect information provided can vary among companies and may not be solely based on investor orientation.

Information Regarding to Future Prospects