Which of the Following Is True Regarding Revelations Involving Enron

question 35

Multiple Choice

Which of the following is true regarding revelations involving Enron and WorldCom?

• A) That their upholding of high ethical standards in regard to accounting practices supports the conclusion that the business world should be allowed to regulate itself.
• B) That WorldCom, a privately held company, had high ethical standards but that Enron, a publicly traded company, engaged in illegal accounting practices supporting the conclusion that privately held companies should be allowed to regulate themselves whereas publicly held companies need significant government regulation.
• C) That WorldCom, a privately held company, engaged in illegal accounting practices but that Enron, a publicly traded company, had high ethical standards supporting the conclusion that privately held companies need significant government regulation whereas publicly held companies should be allowed to regulate themselves.
• D) That although illegal accounting practices occurred, it is so difficult to find and regulate such practices that any regulation should be left to the free market.
• E) That accounting issues with these companies illustrate that the business world cannot be allowed to regulate itself ethically and that government oversight is needed.

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Definitions:

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The process of fixing or restoring parts of a vehicle to proper condition after damage or wear.

Gasoline

A combustible fluid obtained from petroleum, primarily utilized as a fuel in engines that operate through internal combustion.

Cost Function

An equation that calculates the total cost of production based on the quantities of inputs used.

Output

The total amount of goods or services produced by a company or a production process.