Fines levied against those responsible for certain environmentally damaging accidents are now so high that it costs a...

Steph on April 13, 2019

Why is the answer A?

Hi, Can you please explain why the answer is A and not D?

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Kanyin on July 8, 2019

^ bumping this as well.

Kanyin on July 8, 2019

Okay, I think I understand why A is correct.

If it is true that they underestimate the risk then they don't anticipate a future fine and so will not initially comply.

I would still, however, appreciate an explanation of why D is wrong

Veda-Bhadharla on July 19, 2020

I also see why A is wrong but could someone please explain why D is wrong like the above have asked?

NAM1921 on April 20, 2023

Not sure if you all saw the other comments on this thread, but the best explanation I saw as to why D is wrong is that if a business treats a fine as a business expense, they'd probably want to minimize those expenses by not having to pay them at all. It's a better business decision expense wise to take the less expensive road and put whatever changes they're being fined for, so D actually strengthens and doesn't weaken.