Question

Companies need to give full disclosure about which of the following?

a) Financial performance
b) Employee vacation schedules
c) Favorite office snacks
d) CEO's shoe size

Answer 1

Companies are required to give full disclosure about their financial performance, including revenues, costs, and profits to provide transparency to investors and maintain trust (a).

Step-by-step explanation:

Companies need to provide full disclosure about their financial performance. This includes transparent reporting of products, revenues, costs, and profits. Full disclosure is important because as a company grows and becomes established, this information is essential for outside investors, such as bondholders and shareholders, who are willing to provide financial capital to the firm without personally knowing the managers.

Providing this kind of information helps foster trust and credibility with investors, ensuring their support for potential future profitability.