The Primary Reason for Lehman Brothers' Bankruptcy in September 2008

question 105

Multiple Choice

The primary reason for Lehman Brothers' bankruptcy in September 2008 was its investment in:

• A)subprime mortgages.
• B)bonds of foreign governments.
• C)U.S. government bonds.
• D)risky stocks.

---

Definitions:

Managerial Attention

The focus and prioritization that managers give to certain issues, tasks, or information, which can significantly impact decision-making and leadership.

Actual

Pertaining to or representing the current state of affairs or reality, as opposed to potential or theoretical scenarios.

Desired Performance

The specific level of output or achievement that an organization or individual aims to reach, often set as a target or goal.

Control Process

The systematic effort by business management to compare performance to predetermined standards, plans, or objectives in order to determine whether performance is in line with these standards and presumably to take any corrective action required.