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Financial Analysis MCQs

Government mandated requirements, such as installing pollution control equipment ______.

increase a company's profits in the long run

drive many companies out of business

have resulted in many instances of unethical behavior on the part of managers

may reduce a company's earnings but are considered a necessary social responsibility for the firm

do not affect a firm's profit potential

Answer

Correct Answer: may reduce a company's earnings but are considered a necessary social responsibility for the firm

Explanation:

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