The likelihood of ethical lapses as well as poor long-term company performance tends to increase when there are

Question

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When a company makes dramatic cuts in research and development expenditures in years when low earnings are reported, it may lead to ethical lapses such as cutting corners, compromising on quality, or even engaging in fraudulent activities to increase short-term profitability. This is because the company is prioritizing short-term gains over long-term sustainability, and such practices are not sustainable in the long run. This, in turn, can lead to poor long-term company performance.

The Likelihood of Ethical Lapses as Well as Poor Long-Term