All of the following are factors that led to the poor financial condition of the Bakery Barn, EXCEPT:

• A. Implementation of strong ethical policies
• B. Opportunity due to weak internal controls
• C. Rationalization of unethical behavior
• D. Pressure to meet loan covenants

Answer: (A)

Verified step by step guidance

1. Understand the context of the question: The problem is asking which factor is NOT a reason for the poor financial condition of the Bakery Barn. This is a conceptual question related to financial accounting and ethics.
2. Review the provided options: The options include 'Implementation of strong ethical policies,' 'Opportunity due to weak internal controls,' 'Rationalization of unethical behavior,' and 'Pressure to meet loan covenants.'
3. Analyze each option: Consider how each factor could impact the financial condition of a business. For example, weak internal controls, rationalization of unethical behavior, and pressure to meet loan covenants are commonly associated with financial mismanagement or fraud.
4. Focus on the exception: The option 'Implementation of strong ethical policies' is a positive factor that typically improves financial health and reduces the risk of unethical behavior, making it the exception in this context.
5. Conclude the reasoning: Based on the analysis, the correct answer is the factor that does not contribute to the poor financial condition, which is 'Implementation of strong ethical policies.'