Question

name
this will be graded and worth 50 pts. put in your binder when you are finished.

1. what happened to arthur andersen after the scandal?

it was bought by worldco it merged with enron it lost its license and shut down it became more successful

1. which companys executives used company funds for luxury items and parties?

enron arthur andersen tyco worldcom

1. what was a common factor in the collapse of enron, worldcom, and tyco?

technological failures corporate fraud and unethical behavior government takeovers natural disasters

1. what did tyco executives do that led to the scandal?

failed to pay taxes stole company funds for personal use ignored environmental regulations invested in risky stocks
please write the correct answer in the answer rectangle.
question answer

1. in early 2000s why did a few major companies collapse?
2. enron was once one of the ______ companies in the world.
3. enron used complex accounting ______ to hide debt.
4. what type of business is worldcom?
5. worldcom was one of the largest accounting ______ in us history.
6. who stole from tyco?
7. what was arthur andersen responsible for?
8. what happened to evidence involved with arthur andersen?
9. what happened to arthur andersen?
10. how is sarbanes - oxley act affiliated with salisbury?

Explanation:

1. In early 2000s, major companies collapsed due to corporate fraud and unethical behavior. Enron, WorldCom, and Tyco are examples.
2. Enron was once one of the largest companies in the world. It used complex accounting schemes to hide debt.
3. WorldCom was a telecommunications - type business and was involved in one of the largest accounting scandals in US history.
4. Tyco executives stole company funds for personal use leading to a scandal.
5. Arthur Andersen, an accounting firm, was responsible for auditing Enron. It destroyed evidence related to Enron and lost its license and shut down after the scandal.
6. The Sarbanes - Oxley Act was passed in response to corporate accounting scandals like Enron and WorldCom to improve corporate governance and financial reporting.

Answer:

1. Corporate fraud and unethical behavior
2. Largest
3. Schemes
4. Telecommunications
5. Scandals
6. Tyco executives
7. Auditing Enron
8. Destroyed
9. Lost its license and shut down
10. Passed in response to corporate accounting scandals to improve governance and reporting