QPD Corporation discovered financial information about its prime competitor which it used to its advantage.QPD did not obtain the information from any illegal source or through any illegal means.As discussed by the authors,which of the following disadvantages of having a corporate form of business is responsible for QPD's knowledge of the details of its competitor's financial situation?
A) Conflict within the corporation giving pressure to increase sales revenue
B) Government regulation demands necessitating increased paperwork
C) Lack of secrecy requiring the reporting of specific corporate activities
D) Requirements for specialized management cause competitors to employ individuals who have worked for competitors

Question

Quizplus · Accepted Answer

One of the disadvantages of having a corporate form of business is the lack of secrecy due to requirements to report specific corporate activities, including financial information. QPD likely obtained the information legally through public disclosures made by its competitor as part of its regulatory requirements. Because the competing company is a public entity, QPD was able to access and use this information to its advantage.

QPD Corporation Discovered Financial Information About Its Prime Competitor Which