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The Occupational Safety and Health Administration (OSHA) fines companies for violations of safety and health regulations in the workplace.

If a company has a large number of OSHA violations, what might be concluded?

A

Managers may not be spending money on maintenance and safety issues. This may save the company money and possibly increase their own bonuses, but is exposing the company to increased risks as demonstrated by all the violations.

B

Nothing can be concluded without further information.

C

Safety and health issues are only important in certain industries.

D

Shareholders should not be concerned about minor regulatory infractions. It is the formal law suits which really matter.

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