What is called when the bad position of the business is tried to be depicted as good?

Window Dressing

The correct answer is option 1- Window Dressing.

Window Dressing is called, when the bad position of the business is tried to be depicted as good.

Window dressing means manipulation of accounts so as to present the financial statements in a way to show a better position than the actual. e.g., assets may be overstated and liabilities may be understated.