Because a business has considerable discretion in reporting performance results, financial reports can sometimes be _____ without technically being illegal.

Question

Quizplus · Accepted Answer

Financial reports can be crafted in such a way that they are not technically inaccurate, but still intentionally misleading in order to present a more positive picture of the company's performance. While this may not be illegal, it can be considered unethical business practice. Therefore, the best answer is B - misleading.

Because a Business Has Considerable Discretion in Reporting Performance Results