After the Exposure of Fraud at WorldCom, _____ Was Named

question 116

Multiple Choice

After the exposure of fraud at WorldCom, _____ was named the new CEO.

• A) Cynthia Cooper
• B) Bill Clinton
• C) Michael Capellas
• D) Betty Vinson

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Definitions:

Erosion

The portion of cash flows of a new project that come at the expense of a firm’s existing operations.

Incremental

Refers to the additional changes in costs or revenues that result from a business decision.

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are expected to yield the highest returns over time.

Cash Flows

The comprehensive total of funds circulating in and out of a business, markedly affecting its ability to liquidate assets.