Business firms that 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 shareholders.

Question

Quizplus · Accepted Answer

Cheque kiting is an unethical and illegal financial technique that involves intentionally writing checks with insufficient funds in order to artificially inflate account balances and obtain unauthorized credit. It is a form of fraud and harms the financial institutions involved, their customers, and the overall integrity of the financial system. Engaging in such practices is not a socially responsible behavior, as it goes against principles of honesty, fairness, and accountability. While it may temporarily benefit shareholders by boosting financial performance, these gains are not sustainable or ethical.

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