The Failure of Companies Such as Enron,WorldCom,Royal Bank of Scotland,and

question 46

Multiple Choice

The failure of companies such as Enron,WorldCom,Royal Bank of Scotland,and Kaupthing Bank of Iceland illustrate:

• A)The hazards of growth through acquisition
• B)The ineffectiveness of most company boards of directors
• C)The potential for companies to be vehicles for the personal ambitions of chief executives
• D)How easily the stock market is fooled by ambitious,visionary CEOs

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Definitions:

Cost-Benefit School

An economic approach that evaluates the outcomes of policies or projects by comparing their costs to their benefits, emphasizing efficiency.

Vulnerable School

An educational institution that is more susceptible to risks, such as safety threats or insufficient resources.

Jurisprudence

The study and theory of law, including the philosophies underlying legal systems.

Jurisdiction

The official power to make legal decisions and judgments, often defined by geographic territory or specific types of cases.