The Fall of Enron and WorldCom Was Due to

question 75

Multiple Choice

The fall of Enron and WorldCom was due to

• A)Substandard products
• B)Poor strategic plan
• C)Unsavoury financial and management practices
• D)Failure of marketing plan
• E)No longterm business plan

---

Definitions:

Formal Instruments

Legally binding documents that record obligations, rights, or processes, such as contracts, deeds, or promissory notes.

Credit Issued

The provision of funds or goods before payment, based on the trust that payment will be made in the future.

Reasonable Source

A credible or reliable origin of information or data that is considered acceptable or trustworthy for making decisions or drawing conclusions.

Sold Receivables

The process of a company selling its receivables to a third party to improve its cash flow.