After the Scandals at WorldCom, Tyco, Adelphia, and Enron, in Which

question 52

True/False

After the scandals at WorldCom, Tyco, Adelphia, and Enron, in which company employees lost millions of dollars and their nest eggs, U.S. companies showed less concern for corporate governance and more interest in the development of corporate social responsibility.

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Definitions:

Cost-benefit Constraint

A principle in decision-making and economics that suggests actions or decisions should only be taken if the benefits outweigh the costs.

Information Disclosed

Refers to sharing or revealing information that was previously unknown or confidential, often in the context of financial reporting or legal requirements.

Benefits

Refers to non-wage compensations provided to employees, which may include health insurance, pensions, and other perks.

Double Taxation

The imposition of two separate taxes on the same asset, income, or financial transaction, often seen when corporate earnings are taxed both at the corporate level and again when distributed as dividends to shareholders.