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The overestimation of profits by a business can lead to misguided investments and resource allocation, which may distort market dynamics and hinder economic growth. This can result in job losses if the business fails to meet its projected performance, causing unemployment and financial strain on families. Additionally, inflated profit reports can mislead stakeholders, including investors and consumers, undermining trust in the market and damaging the overall economic stability of society. Ultimately, such practices can contribute to wider socio-economic disparities and diminish public confidence in business institutions.

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1w ago

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