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WorldCom Gave Managers Stock Options and Bonuses Even When the Company

question 42

Multiple Choice

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other stockholders.This illustrates the_____ approach.


Definitions:

Clusters

Groups of similar items or data points that are closer to each other than to other items or points in a dataset.

Annual Percentage Rate

The yearly interest percentage rate that expresses the total cost of borrowing, including fees and charges.

Compounded

The process by which an investment grows over time as earnings are reinvested to generate additional earnings, known as compound interest.

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money, often expressed as a percentage of the principal.

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