WorldCom's Failure to Report $3

question 54

Multiple Choice

WorldCom's failure to report $3.8 billion of operating expenses is an example of:

• A) an effort to conform to changed accounting rules.
• B) an attempt to maximize the value of the shareholders' investment in the firm.
• C) an effort to serve the needs of the customer.
• D) an attempt to increase the company's market value in an unethical way.

---

Definitions:

Oligopoly Market

A market structure characterized by a small number of firms that dominate the market, often leading to limited competition.

Licensed to Sell

The authorization given to individuals or companies to engage in the selling of certain products or services.

Antitrust Lawsuit

A legal action taken against parties alleged to have violated antitrust laws, aimed at promoting competition and preventing monopolies.

Resale Price Maintenance

A practice where a manufacturer and its distributors agree on the selling prices of the products to end customers.