Final answer:
It is false that a lower level person directed by a superior to perform illegal actions, like cooking the books, cannot be prosecuted. Both the subordinate and the superior can be held responsible for illegal acts. Compliance does not provide immunity from legal consequences.
Step-by-step explanation:
The statement that a lower level person in a firm cannot be prosecuted for illegal activities such as cooking the books if they were instructed to do so by a superior is False. Individuals at any level of an organization can be held legally responsible for their actions, especially if those actions are illegal. Compliance with an order does not absolve an employee from accountability, particularly in the realm of financial misconduct, such as understating costs to increase profits.
In businesses, both the superior who gives the directive and the subordinate who carries it out may face prosecution if the action violates the law. Bureaucratic oversight within organizations and regulatory bodies exist to discourage and address such misconduct. But despite regulations and potential legal consequences, the prospect of increased profits can sometimes be a powerful motivator for individuals and firms to engage in unethical or illegal behavior, such as collusion or deceptive financial reporting.