CLEP Marketing

Answer: E - Widespread allegations of fraudulent accounting since the Enron scandal have prompted the government to enact stricter financial laws and rules in corporate accounting. This is the legal and regulatory environment. Unethical corporate behavior has become widespread over the past decade. With many corporations using vague and fraudulent accounting to hide losses, the government has developed laws demanding more transparency. These laws and rules are considered the legal and regulatory environment in which all corporations must operate their business.