Question

Which of the following techniques were completed by Cheesecake Factory in providing misleading information?

a) Fabrication of financial statements
b) Selective disclosure
c) Insider trading
d) Obfuscation of key metrics

Answer 1

The Cheesecake Factory was associated with the technique of obfuscation of key metrics, which involves presenting financial data in a confusing way to mislead investors about the company's financial health.

Step-by-step explanation:

The Cheesecake Factory has been associated with the technique of obfuscation of key metrics. To clarify, obfuscation means making information hard to understand or unclear, often to mislead or hide the true state of affairs. In the context of business and financial reporting, this could involve presenting financial data or performance indicators in a confusing way, which may mislead investors and stakeholders about the company's true financial health. It's important to note that while this technique is accused of providing misleading information, it is not the same as the direct fabrication of financial statements, which would involve creating untrue records or reports. Selective disclosure and insider trading are types of securities fraud but may not directly relate to how financial information is presented in company reports.