Upfront quiz 1.
Position | Corporate fraud - Brief Article |
DIRECTIONS: Circle the letter next to the correct answer.
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How did Chief Executive Officers (CEOs) and other corporate leaders cheat investors and employees? a They forged stock certificates. b They stole money and lied about company losses. c They overspent in risky overseas operations. d They sold their stock at bargain-basement prices. 2. Stock prices of several multibillion-dollar companies fell dramatically after a investors lost confidence and quit the stock market. b CEOs' salaries went up. c labor troubles erupted at several high-tech corporations. d foreign competitors outsold U.S. companies. 3. The popular phrase "cooking the books" is generally understood to mean a theft of company records." b a reduction in the number of a company's workers. c financial scandals involving members of Congress. d accounting irregularities. 4. Experts say the timing of the corporate scandals could not have been worse because a of the growing tensions with Iraq. b Congress had recently lowered corporate income taxes. c the scandals halted mergers between many big companies, costing investors additional millions of dollars. d the economy was already wobbly. 5. The scandals and stock market losses have directly affected millions of ordinary Americans because a most Americans work for companies that sell stocks. b stock market losses raise the cost of education. c more than half of all Americans own stock either directly or through mutual funds. d stock market losses raise the price of food. 6. Some business experts blame the rise in the number of corporate scandals on the fact that a the federal government relaxed regulations and oversight of company actions. b there are simply more greedy business executives today than there were in the past. c American corporations have begun to adopt the business practices of other countries. d most investors quickly sell stocks that do not produce a return of at least 50 percent on their investment. 7. The stock market decline has been particularly hard on millions of a military families...
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