Which of the following is an example of a company acting irresponsibly toward its investors?
A) The board of directors does not declare a dividend
B) Retained earnings are used to expand research and development instead of paying a dividend
C) Top management misrepresents the firm's financial situation
D) The firm does not allow insider trading
E) The firm uses retained earnings to finance growth

Question

Quizplus · Accepted Answer

Top management misrepresenting the firm's financial situation is an example of acting irresponsibly toward investors as it leads them to make investment decisions based on false information, which can result in financial losses.

Which of the Following Is an Example of a Company