Which One of the Following Firms Falsely Claimed to Have

question 7

Multiple Choice

Which one of the following firms falsely claimed to have a $4.8 billion bank account at Bank of America and vastly understated its debts,eventually resulting in the firm's bankruptcy?

• A) WorldCom
• B) Enron
• C) Parmalat
• D) Global Crossing

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Definitions:

Compounded Quarterly

A method where interest is calculated and added to the principal balance four times a year, affecting the total interest accrued over time.

Promissory Note

An economic tool comprising a formal pledge by one party to give a specific amount of money to another, redeemable upon request or at a predetermined time.

Discounted

Refers to the reduction of an item's price or the present value of future cash flows discounted back to the present value.

Proceeds

The amount of money brought in from a transaction or sale, before any expenses are deducted.