Major Scandals at Enron, WorldCom, and Tyco Led to the Passage

question 2

Multiple Choice

Major scandals at Enron, WorldCom, and Tyco led to the passage of which law in 2002?

• A) The Securities and Exchange Commission Act
• B) The Sarbanes-Oxley Act
• C) The Banking Regulation and Overhaul Act
• D) The Federal Trade Commission Act

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Definitions:

Conditional Sales Contracts

Agreements where the sale is contingent upon certain conditions, often used in transactions involving goods or property.

Purchased Equipment

Machinery or tools acquired by a business for use in its operations, representing capital expenditure and an enhancement of operational capacities.

Credibility

The quality of being trusted and believed in, often considered crucial for businesses, leaders, and information sources.

Bankers

Professionals who are employed by banks, offering financial services to clients such as loans, deposits, and currency exchange.