How Could Many of the Security Frauds of the Late

question 71

Multiple Choice

How could many of the security frauds of the late 1990s and early 2000s have been prevented?

• A) With a less litigious Security and Exchange Commission.
• B) With a return to the Gold Standard.
• C) With fewer interventions by labor unions.
• D) With an emphasis on bonds rather than stock markets.
• E) With the extension of the Glass-Steagall Act.

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Definitions:

Return on Total Assets

Return on total assets (ROTA) is a financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Beginning Total Assets

The total value of all assets owned by a company at the start of a financial period.

Ending Total Assets

Ending Total Assets refer to the total value of all assets owned by a company at the end of a financial reporting period.