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:

Sculptor

An artist who creates three-dimensional works of art by carving, modeling, welding, or casting materials such as clay, stone, metal, or wood.

Theory Of Emotion

A concept or model that seeks to explain the relationship between emotions, physiological responses, and cognitive processes.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased activity in the sympathetic nervous system.

Stimulus

Any event or situation that evokes a response from an organism.