Business Studies · Corporate Ethics and Scandals
What was the primary ethical failure in the Satyam scandal that led to the financial misrepresentation of the company's performance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The company's failure to comply with international accounting standards, which led to a decline in investor confidence.
- 2The poor decision to expand into infrastructure and real estate, which was not aligned with the company's core business.
- 3The management's intentional falsification of financial records to artificially inflate revenues and profits.✓
- 4The company's attempt to acquire a competitor, which led to a conflict of interest.
Correct answer
The management's intentional falsification of financial records to artificially inflate revenues and profits.
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