The failure of companies such as Enron,WorldCom,Royal Bank of Scotland,and Kaupthing Bank of Iceland illustrate:
A)The hazards of growth through acquisition
B)The ineffectiveness of most company boards of directors
C)The potential for companies to be vehicles for the personal ambitions of chief executives
D)How easily the stock market is fooled by ambitious,visionary CEOs

Question

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The failure of these companies shows that they were driven by the personal ambitions and desires of their chief executives, who were motivated more by personal gain than by the long-term success of their companies. The case of Enron, for example, shows how the company's CEO used questionable accounting practices to inflate the company's earnings and enrich himself and other top executives. Similarly, the case of WorldCom illustrates how the company's CEO engaged in accounting fraud to hide the true financial condition of the company and personally enrich himself. These examples demonstrate the potential for companies to be vehicles for the personal ambitions of their leaders. While growth through acquisition and ineffective boards of directors may also contribute to company failures, they are not the main lesson to be learned from these cases.

The Failure of Companies Such as Enron,WorldCom,Royal Bank of Scotland,and