Narrative 16-2 Interpublic Is the World's Third-Biggest Marketing Services Group. in 2005

question 119

Multiple Choice

Narrative 16-2
Interpublic is the world's third-biggest marketing services group. In 2005, the company informed the Securities and Exchange Commission (SEC) that it "had found accounting errors resulting from incompetence as well as falsified books and records, violations of the laws and company policies, and inappropriate customer charges" that required it to restate its earnings for every year in the decade. Interpublic is guilty of overstating both its expenses and its revenues in its earnings reports. The company blames its faulty revenue reporting on "inadequate procedures for review of customer contracts." This fraudulent activity will more than likely result in a default on the company's debt and the loss of its stock market listing.
-Refer to the Narrative 16-2.Which of the following best describes why Interpublic should consider the implementation of the balanced scorecard?

• A) to eliminate the need for restructuring
• B) to maximize benchmarking opportunities
• C) to track internal and external environmental changes
• D) to minimize the chances of suboptimization

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Definitions:

Colon Cancer

A type of cancer that begins in the large intestine (colon), which is the final part of the digestive tract.

Colostomy

A surgical procedure that creates an opening (stoma) from the colon to the surface of the abdomen to eliminate waste.

Peristalsis

The involuntary contractions and relaxations of the muscles in the digestive tract, which move contents through the system.

Jejunum

The middle section of the small intestine between the duodenum and ileum, where most of the nutrients from food are absorbed.