When WorldCom Gave Managers Stock Options and Bonuses Even When

question 37

Multiple Choice

When WorldCom gave managers stock options and bonuses even when company performance was declining,and managers sold stock in advance of other stockholders,they were acting with a(n) ____________ approach.

• A)accommodative
• B)proactive
• C)defensive
• D)obstructionist
• E)offensive

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Definitions:

Split-off Point

The stage in the production process where multiple products become separately identifiable, often relevant in costing and decision-making processes.

Financial Advantage

The benefit gained in financial terms that gives an individual or entity a better position compared to others.

Production Run

A specific period or batch of production where goods are manufactured continuously, often tracked to analyze efficiencies and costs.

Relevant Costs

Costs that are directly influenced by a specific business decision, and are crucial for cost-effective management decisions.