Which of the Following Could Most Likely Have Prevented the Accounting

question 116

Multiple Choice

Which of the following could most likely have prevented the accounting scandals of the early 2000s and the global financial crisis?

• A) Adopting a narrow shareholder perspective
• B) Separating economic interests and social needs
• C) Practicing effective corporate governance
• D) Adopting the principles of shareholder capitalism

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Definitions:

Conservative

A risk-averse approach, especially in investment or financial strategies, focusing on preserving capital and maintaining a low risk profile.

Withdraw

The action of removing funds from an account or investment.

Compound Rate

The rate at which interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Annually

Occurring once every year or relating to a period of one complete year.