As a Result of the Recent Scandals at Enron,WorldCom and Other

question 15

Multiple Choice

As a result of the recent scandals at Enron,WorldCom and other American businesses,laws have been passed to mandate ________________ for people who break them.

• A)Financial penalties.
• B)Jail time.
• C)Financial penalties and jail time
• D)Corporal punishment.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or production, such as rent, salaries, and insurance.

Variable Costs

Expenses that fluctuate based on the amount of products or services a company generates.

Break-even Sales

The amount of revenue that a business must generate to cover its fixed and variable costs before starting to realize a profit.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance premiums.