Business firms which engage in cheque kiting are acting in a socially responsible manner because such financial techniques result in higher profits, higher dividends, and higher stock prices, and these benefit stockholders.

Question

Quizplus · Accepted Answer

Cheque kiting involves deliberately inflating account balances by writing checks between accounts that do not have sufficient funds, which is fraudulent behavior. Such actions are unethical and illegal, and can harm not only the financial institution but also other stakeholders such as customers and the broader community. Therefore, engaging in cheque kiting cannot be considered as socially responsible behavior.

Business Firms Which Engage in Cheque Kiting Are Acting in a Socially