Why Has the Reputation of U

question 13

Multiple Choice

Why has the reputation of U.S. accounting standards decreased in recent years?

• A)The U.S. deficit is at a record high.
• B)Many U.S. businesses have declared bankruptcy.
• C)There have been some notable American accounting scandals, such as Enron.
• D)Lengthy prison sentences have been given to unethical American executives, such as Bernie Madoff.

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Definitions:

Breach of Duty

The failure to act or perform one's duties as required by law or contract, leading to legal implications.

Assumption of Risk

A legal principle under which an individual acknowledges and accepts the risks associated with an activity, possibly diminishing their right to claim damages.

Equestrian

related to horse riding or the skills associated with riding, training, and handling horses.

Comparative Negligence

A principle of law that allocates damages based on the degree of fault of each party involved in an accident.