Question

Many companies hide their losses from fraud rather than make them public.

Option 1: True
Option 2: False

Answer 1

The statement is true, as some companies hide losses through fraudulent practices to avoid negative impact or scrutiny.

Step-by-step explanation:

The statement 'Many companies hide their losses from fraud rather than make them public' is True.

There have been instances where companies engage in fraudulent practices to conceal their losses. This can be done through accounting manipulation, misrepresentation of financial statements, or other deceptive practices. Such frauds are often driven by the desire to maintain a positive public image, attract investors, or avoid regulatory scrutiny.