Which of the following is NOT one of the levers Larry Davis might use to convince Paul Jones about the rightness of his point of view in the Ace Manufacturing case discussed in the chapter?
A) Davis can ask Paul Jones for supporting documentation to back up the coding of expenses to different accounts
B) Davis can try to convince Paul that his actions are harmful to the company and potentially very embarrassing for his dad
C) Davis can threaten to go to all the owners if Paul doesn't admit the mistake and take corrective action
D) Davis can threaten to go to the SEC to protect shareholder interests if Paul agrees to pay back the amounts taken out of the company and correct the accounting

Question

Quizplus · Accepted Answer

Option D is incorrect because going to the SEC (Securities and Exchange Commission) would be an extreme measure not typically involved in internal company disputes like the one described in the Ace Manufacturing case. The SEC deals with securities law violations, which may not be directly relevant to the internal accounting issues described.

Which of the Following Is NOT One of the Levers