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.

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Definitions:

Cortex

The outermost layer of the brain, involved in higher-level functions such as consciousness, thought, emotion, reasoning, language, and memory.

Two-Factor Theory

A psychological theory, proposed by Herzberg, which suggests that there are two sets of factors that influence job satisfaction: hygiene factors and motivators.

James-Lange Theory

An idea indicating that feelings arise from bodily reactions triggered by situations.

Parasympathetic Arousal

The part of the autonomic nervous system responsible for relaxation and slowing down the body after stress or danger has passed.