Many companies such as Tyco, Enron, and WorldCom that suffered financial distress in the late 1990s and early 2000s,
A) committed fraud.
B) had failed corporate governance oversight.
C) went bankrupt.
D) all of these are true.

Question

Quizplus · Accepted Answer

All of the given options are true. These companies not only suffered financial distress, but they also committed fraud through manipulating financial statements and misrepresenting their financial position. In addition, they had failed corporate governance oversight as their board of directors and management failed to exercise their fiduciary duties and ethical responsibilities towards stakeholders. This ultimately led to bankruptcy for each of the companies.

Many Companies Such as Tyco, Enron, and WorldCom That Suffered