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Answer :
The subject of this question revolves around business ethics and practices, which are part of the Business studies curriculum.
In examining the options:
A. Fails to pay an invoice on time: This could be categorized as a breach of contract or poor business practice, but it is not inherently unethical unless done with intentional deceit or harm.
B. Intentionally misrepresents facts to deceive another party: This action is indeed unethical and is equivalent to fraud. It involves lying or presenting false information to gain an advantage, which can harm relationships and trust in business dealings.
C. Legally increases its product prices: This is generally considered a normal and legal business decision. Pricing strategies can vary based on market conditions, costs, and business objectives.
D. Makes a mistake in its financial records: This might indicate carelessness or a need for better internal controls, but unintentional errors are not inherently unethical unless they are corrected once discovered.
For this question, option B. intentionally misrepresents facts to deceive another party is the action that clearly involves unethical behavior. This understanding is essential in Business studies, especially when learning about ethical decision-making and maintaining corporate integrity.
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