A large company specializing in bread baking has made its annual balance sheet available to its investors.Profits were slightly lower than expected this year.Which of the following items does NOT need to be included in this statement in order to fulfill the principle of full disclosure?
A) The current rise of local micro-bakeries has not affected and probably will not affect the revenue of the company.
B) The company is contemplating a merger with another major baking company.
C) Much of the loss of profits can be explained by the sudden rise in the price of wheat during the past year.
D) A baking start-up company founded by some former executives of the company looks like it will be a major competitor in the upcoming years.
E) The company and the union for its workers were able to halt a labor strike by negotiating increased health benefits for its workers, causing a slight increase in operating costs.

Question

Quizplus · Accepted Answer

B)Since this would be a company secret at this point and not directly affect costs or revenues from the previous year, this would be unnecessary (and probably unwise)to reveal.

A Large Company Specializing in Bread Baking Has Made Its