WorldCom's Accounting Scandal Resulted From

question 108

Multiple Choice

WorldCom's accounting scandal resulted from:

• A) Embezzlement.
• B) Capitalization of ordinary expenses.
• C) A downturn in the telecommunications market demand.
• D) Both b and c
• E) None of the above

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Definitions:

Takeover Bid

An offer made by an individual, group, or company to purchase a significant portion or all of the target company's shares in order to gain control of the target company.

Hostile Takeover

An acquisition attempt by a company or individual that is opposed by the target company's management and board of directors.

Flip-Over Provision

A defensive mechanism in a company's charter intended to deter hostile takeovers by allowing shareholders to purchase additional shares at a discount in the event of a takeover.