Which of the following describes one of the causes of management bias?
A)The need to comply with contracts, such as debt covenants.
B)The desire to meet financial analyst's expectations.
C)The tendency to emphasize positive events only.
D)All of these

Question

Quizplus · Accepted Answer

All three options listed can potentially cause management bias. A) Contractual obligations may lead management to make decisions that prioritize meeting those obligations over the best interests of the company. B)Pressure to meet financial analyst expectations may lead to decisions that focus on short-term gains and overlook long-term negative consequences. C) Emphasizing positive events only may lead to unintentional oversight of negative information or avoiding acknowledgment of problems.

Which of the Following Describes One of the Causes of Management