Several Large Frauds Occurred in 2001 and 2002

question 168

Multiple Choice

Several large frauds occurred in 2001 and 2002. Which of the following was NOT a consequence of these frauds?

• A) Arthur Anderson, LLP was convicted of fraud but was allowed to stay in business.
• B) There were adverse market reactions throughout the world.
• C) Thousands of jobs were lost when Enron and WorldCom went out of business.
• D) There was a loss of confidence in the financial reporting system.

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Definitions:

Organized Recreation

Structured forms of leisure activities that are planned or regulated by organizations or institutions, aimed at providing entertainment or skill development.

Spontaneous

Occurring without apparent external cause; arising naturally and unexpectedly.

Technology

The application of scientific knowledge for practical purposes, especially in industry, including the invention and use of technical means and their interrelation with life, society, and the environment.

Political Biases

Preconceived notions or predispositions toward specific political parties, ideologies, or policy decisions, often resulting in a lack of impartial judgment.