Enron: A Failure in Business Ethics

Question 1

Since the actual future price of a commodity is uncertain this is essentially a form of:

Accepted Answer

gambling

Question 2

Because of the “energy crisis” California Governor Gray Davis was recalled, who replaced him?

Accepted Answer

Arnold Schwarzenegger

Question 3

The Enron Company creates a SPE to purchase one of its own unprofitable Polish power plants.

Accepted Answer

This is an unethical example of the use of a SPE.

Question 4

The Enron Company can best be described as:

Accepted Answer

An American energy company based in Houston.

Question 5

This former Enron executive was released from Federal prison in 2011 and does what today?

Accepted Answer

He is a paid public speaker on the subject of corporate ethics.

Question 6

Lou Pai left Enron with approximately _____ million dollars when he sold his stock.

Accepted Answer

250

Question 7

This bankruptcy is still the largest bankruptcy in U.S. history.

Accepted Answer

Lehman Brothers

Question 8

A Special Purpose Entity is a corporation created by another corporation:

Accepted Answer

for a specific and temporary purpose.

Question 9

At the time it declared bankruptcy, it WAS the largest in US history.

Accepted Answer

The Enron Company

Question 10

He became an informant and plead guilty to fraud and money laundering. He was released in 2011.

Accepted Answer

Andy Fastow

Question 11

Walt Disney creates a SPE to purchase land for a future theme park:

Accepted Answer

This an ethical use of an SPE.

Question 12

She was the whistleblower at Enron:

Accepted Answer

Sherron Watkins

Question 13

Lou Pai was known as the ____________ CEO at Enron because he was rarely seen in the office.

Accepted Answer

invisible

Question 14

Enron traders manipulated the energy market in this U.S. STATE by driving up energy prices:

Accepted Answer

California

Question 15

Fortune magazine named Enron this for six consecutive years:

Accepted Answer

the most innovative company in America.

Question 16

He was captain of the Titanic and ignored the icebergs and continued full-speed ahead:

Accepted Answer

Ken Lay

Question 17

Approximately 20,000 employees lost their _____ when Enron declared bankruptcy.

Accepted Answer

jobs

Question 18

Enron had been the ___________ contributor to the presidential campaign of George W. Bush.

Accepted Answer

largest

Question 19

Enron would become a kind of _____________ for natural gas; a magical new idea.

Accepted Answer

stock market

Question 20

Several years ago Enron was the __________ largest corporation in America.

Accepted Answer

7th

Question 21

Enron paid approximately $100 million for the naming rights for:

Accepted Answer

Astros Baseball Stadium

Question 22

He was released from Federal prison in 2019. He is reportedly back in Houston working on a new business idea.

Accepted Answer

Jeffrey Skilling

Question 23

Enron traders discovered that by shutting down power plants they could create artificial:

Accepted Answer

shortages

Question 24

He served as chairman of the board of Enron. He was born to a poor family in Tyrone, MO:

Accepted Answer

Ken Lay

Question 25

Jeff Skilling was a person with _______ ideas.

Accepted Answer

big

Question 26

The fatal flaw at Enron was:

Accepted Answer

all of these are correct

Question 27

It took Enron only ______days to go bankrupt.

Accepted Answer

24

Question 28

Any raw material (oil, natural gas, wheat, cattle) can be traded on the “___________” market.

Accepted Answer

futures

Question 29

Enron’s accounting firm, Arthur Andersen, received _____ million dollars a week.

Accepted Answer

one

Question 30

An arbitrage opportunity has been defined as any opportunity to make abnormal:

Accepted Answer

profits

Question 31

Enron was one of the leading electricity and ____________ companies in the United States.

Accepted Answer

natural gas

Question 32

The divisions that Lou Pai left behind lost a total of nearly _____ billion dollars.

Accepted Answer

one

Question 33

Enron adopted this accounting method in order to exaggerate, or simply create, profits:

Accepted Answer

Mark to Market Accounting

Question 34

Jeff Skilling thought that ___________ was the only thing that motivated people.

Accepted Answer

money

Question 35

Enron was a house of cards built over a pool of:

Accepted Answer

gasoline

Question 36

An employee of a business who reports misconduct to people or agencies:

Accepted Answer

Whistleblower

Question 37

Enron moved into cyper-space. This was a partnership with ___________ to sell video on demand

Accepted Answer

Blockbuster

Enron: A Failure in Business Ethics

Questions 37

Enron: A Failure in Business Ethics

Questions 37