Fin370 Quiz 1 Enron: The Smartest Guys in the Room

Satisfactory Essays
Question 1
Answer saved
Marked out of 4.00 Flag question
Question text
Who were the two authors of the book who also appeared in the film ENRON The Smartest Guys in the Room?
Select one: a. McLean and McCarthy b. McLean and Elkind c. McCarthy and Elkind d. Shapiro and Mc Lean

Question 2
Answer saved
Marked out of 4.00 Flag question
Question text
ENRON executives pushed up their stock prices and then cashed in their multi-million dollar options in a process called
Select one: a. mark to market b. just in time c. non recourse financing d. pump and dump

Question 3
Answer saved
Marked out of 4.00 Flag question
Question text
What was the name of the ENRON executive who was hired by Jeff Skilling and served as the Chief Financial Officer
Select one: a. Lou Pai b. Andrew Fastow c. Ken Lay d. Bethany McLean

Question 4
Answer saved
Marked out of 4.00 Flag question
Question text
As a result of the ENRON bankruptcy and scandal, Congress passed this legislature to enforce accountability on the directors of corporate boards?
Select one: a. Corporate Accountability Act b. Affordable Health Care Act c. Sarbanes Oxley Act d. The JOBS Act

Question 5
Answer saved
Marked out of 4.00 Flag question
Question text
One way the ENRON management artificially inflated the market price of the company's common stock was to hide the company's debt in these subsidiaries, known as ____.
Select one: a. slush funds b. special purpose entities c. hedge funds d. offshore banks

Question 6
Answer saved
Marked out of 4.00 Flag question
Question text
ENRON attempted to arbitrage the electric markets in this state by convincing managers to shut down plant output. What state was it?
Select one: a. California b. Washington c. Nevada d. Oregon

Question 7
Answer saved
Marked out of 4.00 Flag question
Question text
One of the most disastrous projects that ENRON embarked on as a major multinational corporation was the power plant in this country. What was the country's

You May Also Find These Documents Helpful

  • Better Essays

    Enron: Tone at the Top

    • 1288 Words
    • 6 Pages

    The fall of Enron is not just one of the largest bankruptcies in U.S. history, but in my opinion, a landmark case study of the lack of business ethics in an organization. Enron’s downfall, along with the demise of Arthur Andersen, one of the largest public accounting firms at the time, brought about a swift change in U.S. regulations governing how publicly traded companies reported their financials. While the top brass at Enron pled ignorance to the fact that they had no control of what was happening at the employee level, there was ample evidence that they were indeed, the architects behind the series of unethical practices that went on in the organization.…

    • 1288 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The movie, Enron: The Smartest Guys in the Room, is a classic story about corporate America's greed an deceit that was discovered after the demise of Enron. The collapse of Enron was one of the largest bankruptcy in history and the movie captures the culture of money and politics involved in big American corporations. The film did a very good job portraying the culture that allowed Enron to become one of the largest corporations in America while hiding the fraud behind the facade of success. It also showed the rise and fall of the companies stock price and the lies behind the companies success which drove their stock price above and beyond. The movie does a great job of building on how Enron…

    • 713 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Case Study

    • 2156 Words
    • 9 Pages

    Enron Corporation began as a small natural gas distributor and, over the course of 15 years, grew to become the seventh largest company in the United States. Soon after the federal deregulation of natural gas pipelines in 1985, Enron was born by the merging of Houston Natural Gas and InterNorth, a Nebraska pipeline company. Initially, Enron was merely involved in the distribution of gas, but it later became a market maker in facilitating the buying and selling of futures of natural gas, electricity, broadband, and other products. However, Enron’s continuous growth eventually came to an end as a complicated financial statement, fraud, and multiple scandals sent Enron through a downward spiral to bankruptcy.…

    • 2156 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Enron - Ask Why?

    • 2887 Words
    • 12 Pages

    Ken Lay the CEO of Enron had come from humble roots. As Enron 's supposed faithful leader he was anything but. He had hired a man by the name of Jeffrey Skilling and Lay thought Skilling was a guy with big ideas. Jeff Skilling 's idea was a new way to deliver energy. He wanted to revolutionize the energy industry. Enron would become a stock market for natural gas. Skilling would transform energy into a way that it could be traded on the stock market. The sticking point for Jeff Skilling to join forces with Enron was going to be if Enron would be allowed to use a method of accounting called mark to market accounting. Mark to market enabled traders to change the tax status of their earnings from capital gains/losses to ordinary income/losses. This occurs on the last day of the year, at which time you tally all of your open holdings as if you were selling…

    • 2887 Words
    • 12 Pages
    Good Essays
  • Good Essays

    The collapse of Enron is perhaps one of this century’s biggest and memorable scandals of this century so far. Created in 1985 through the merger of two natural gas companies, the Houston-based company was considered one of the most successful and powerful companies throughout the 90s. In 2001, Enron’s world came crashing down as the company was forced to reveal that it had defrauded people out of millions of dollars. Those hurt mostly by the collapse of Enron were the workers, whose loyalty and hard work were rewarded with now useless stock options. Within minutes, thousands of people had lost their life savings because the top executives were lining their pockets with Enron’s losses. The following discussion will show how the leadership, management and organizational structures contributed to the failure of this American conglomerate and how it could have possibly been avoided.…

    • 814 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    High risk accounting, inappropriate conflicts of interest, extensive undisclosed off-the-books activity, excessive compensation – these are some of the headings of the report prepared by the U.S. Senate's Permanent Subcommittee on Investigations titled "The Role of the Board of Directors in Enron's Collapse." (Permanent Subcommittee on Investigations, 2002) In February, 2002, Enron's former Chief Executive Officer Jeffery Skilling had testified before members of the Senate Commerce, Science and Transportation Committee that Enron was a financially sound company the day he resigned in August 2001, just months before the company's financial implosion. But the Enron debacle has, as the Houston Chronicle put it, "all the earmarks of classic tragic drama in which hubris causes the fall of the mighty," (Ivanovich, 2002) and, Mr. Skilling's sworn testimony to the contrary, the decisive role that Skilling and the company's other top executives played in the bankruptcy of this $63 billion company now seems incontrovertible. Indeed, from the point of view that the business culture at Enron contributed importantly to the company's demise, the blame for this financial tragedy can be pretty squarely placed on Skilling's shoulders, and the values he promoted among top and mid-level management during his five year stewardship of the company from 1996 to 2001.…

    • 4794 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Legal Issue-Enron

    • 1774 Words
    • 8 Pages

    References: Dharan, Bala G.; William R. Bufkins (2004), Enron: Corporate Fiascos and Their Implications, Foundation Press, ISBN 1-58778-578-1…

    • 1774 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Enron was involved in American’s largest corporate bankruptcy. It is a story about people, and in reality it is a tragedy. Enron made their stock sky rocket through unethical means, and in reality this company kept losing money. The primary value operating among the traders was greed, money, and how to make profits under any circumstance. The traders thought that a good trader is a creative trader and the creative trader can find any arbitrage opportunity. Arbitrage opportunity was defined for the trades as the opportunity to make abnormal profits. The traders rocked the prices of electricity over the roof on the consumers’ accounts. Traders discovered that they could create artificial shortages of electrical power so they could push the price of energy higher. With this strategy the west coast traders were able to make almost 2 billion dollars for Enron.…

    • 1237 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    enron

    • 717 Words
    • 3 Pages

    “A white paper is a government report outlining policy or authoritative report on a major issue. White papers discuss a specific business issue, product, or competitive situation.”…

    • 717 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Enron

    • 5014 Words
    • 21 Pages

    Arbogast, Stephen V. (2008). Resisting Corporate Corruption: Lessons In Practical Ethics From The Enron Wreckage. Salem, Massachusetts: M & M Scrivener Press.…

    • 5014 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    am detailThe ENRON Scandal is considered to be one of the most notorious within American history-White Collar…

    • 727 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Enron and Ethics

    • 1117 Words
    • 5 Pages

    Borden, T. (2003). Enron: How did this Happen. In S. G. Benson, N. Matuszak, & M. A.…

    • 1117 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Enron Scandal

    • 1773 Words
    • 8 Pages

    One of the most popular business bankruptcies and collapses known to date is that of the Enron Corporation. Enron, once known as "America 's Most Innovative Company" by Fortune Magazine six straight years from 1996 to 2001. Enron seemed to be doing very well until the summer of 2001 generating a lot of cash and new businesses, but in October of 2001 Enron was forced to disclose that their accounting practices had been very creative, and failed to follow generally accepted accounting principles. Profits that had been soaring sky high were wiped away and replaced with enormous losses and charges that were never recorded properly. Unfortunately, Enron executives who were responsible for the shady accounting practices, were able to escape this debt by selling off most or all of their shares in the company (valued at over 10 million dollars) before the stock price fell greatly. They also froze employee 's pension plans, and many people lost their jobs in the wake of the collapse and found out their retirement was history (Anonymous, 2002).…

    • 1773 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    When many people hear the word Enron, they immediately associate it with the most important accounting scandal of our lifetimes. Enron was an American gas company that began as the Northern Natural Gas Company in 1931. Internorth, a holding company in headquartered in Omaha, Nebraska, purchased the Northern Natural Gas Company and reorganized it is 1979. Enron arose from the 1985 merger of Houston Natural Gas and Internorth. After building a large, new corporate headquarters in Omaha, the new Enron named former Houston Natural Gas CEO Kenneth Lay as CEO of the newly merged company, and soon moved Enron 's headquarters to Houston, Texas. After becoming the newly created top executive, Lay later became chairman of the board and hired Jeffrey Skilling as Chief Executive Officer. Under their leadership, Enron adopted an aggressive growth strategy. Andrew Fastow, Enron’s Chief Financial Officer, helped create the complex financial structure for the new Enron. (Reinstein, et all, 2002)…

    • 2529 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Ethics

    • 620 Words
    • 3 Pages

    1. ENRON were able to misrepresent their respective earnings reports and stock activity in a fraudulent manner…

    • 620 Words
    • 3 Pages
    Good Essays

Related Topics