WorldCom Classified $3

question 22

Multiple Choice

WorldCom classified $3.85 billion in operating expenses as long-term investments. How would this make WorldCom's financial statements more attractive to investors?

• A) by decreasing depreciation
• B) by reducing capital expenditures
• C) by raising its reported earnings
• D) by boosting its cash flows

Recognize the differences between rational ethics and utilitarianism.

Identify the concept of utility thinking and its role in ethical decision-making.

Distinguish between negative rights theory and positive law.

Explain the significance of landmark legal cases and their influence on ethical reasoning.

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Definitions:

Fallacy of Context

An error in reasoning where the context necessary to understand or properly apply an argument is ignored or misrepresented.

Division

A process in mathematics of distributing a group of things into equal parts or a method in logic of breaking down categories into smaller subcategories.

Hasty Generalization

A fallacy where a conclusion is not logically justified by sufficient or unbiased evidence.

Fallacy of Logical Structure

A type of logical error where an argument's structure is flawed, leading to invalid conclusions.