Reports in the financial press that a particular company reported healthy profits despite increased wage costs are indicative of:
A) the negative impact of reporting payments to employees as expenses while payments to owners are treated as distributions of profits.
B) the implied emphasis on the returns to owners being good and returns to other stakeholders such as employees as being bad.
C) the effect of reporting employees as expenses and not reporting the social costs of unemployment on decisions to restructure companies to reduce the workforce.
D) all of the given answers.

Question

Quizplus · Accepted Answer

The statements in the options collectively highlight the biases and implications in financial reporting and corporate decision-making, where payments to employees are seen as expenses (thus potentially negative), while payments to owners are seen as profit distributions (thus positive). This perspective can influence how companies view restructuring and the broader social impacts of their financial decisions.

Reports in the Financial Press That a Particular Company Reported