ENRON

Enron
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BUSINESS LAW 215
ENRON

1. Identify the individuals servings as the President, Chief Executive Officer, Chairman of the Board of Directors and Chief

Financial Officer of Enron Corporation.

2. What business was Enron engaged in? How was Enron supposed to make money?

3., What financial instrument did Enron utilize to engage in its business? Explain what that instrument is.

4. What was the “mark to market” accounting treatment adopted by Enron? How did that work? How did that allow Enron to book

profits? Were those profits real?

5. What was Arthur Anderson and what role did it play in the Enron collapse?

6. How did the executives at Enron make most of their compensation? What device was utilized? On what did the amount of money

earned by the Enron executives depend?

7. What device did Enron employ to hide losses and its debt? Why was it important to hide the losses