Which of the following illustrates how a company could be irresponsible with respect to its investors?
A) Use profits to fund research and development
B) The president overstates the positive impact of a new contract
C) The board of directors declares a stock split
D) Management accepts a takeover bid from another company
E) No dividends are declared even though the company made a profit

Question

Quizplus · Accepted Answer

Overstating the positive impact of a new contract can mislead investors and create false expectations, which is irresponsible behavior towards them.

Which of the Following Illustrates How a Company Could Be