Class Connections
"The absence of beneficiary control in asymmetric relationships."
What is Shapiro's definition of trust?
Which Enron CEO died before he was sentenced?
Who is Kenneth Lay?
What was Kenneth lay charged with?
In which US city was Enron's corporate headquarters located in?
What is Houston, TX?
Derived from the phrase "Energy" and "on," representing the company's focus on energy trading.
What is the origin of Enron's name?
"have the ultimate rights of ownership to resources, transfer power, and delegate usage rights over these resources to others"
What is a principal?
What did Fastow implement to the company?
What are SPE's?
What created the oversight board?
What is the Sarbanes-Oxley act?
What was Enron's slogan?
Ask Why
Name a person who spoke out against Enron
Who is Sherron Watkins?
"act on behalf of another as they listen to demands and carry them out"
What is an agent?
What major media company is Kenneth Lay attribute a 110-million-dollar deal with?
What is Block Buster?
How many employees from Enron were convicted?
21 individuals
Which two companies merged to create Enron?
What was the type of accounting used by Enron to hide shady profits?
What is mark-market accounting?
“principal cannot determine if the agent is performing the work for which s/he is paid.”
What is adverse selection?
What is Jeffrey Skilling doing now?
He launched a launched an investing company that invests in oil and gas assets
Are new regulations put into place only because of Enron?
No, they are fundamental issues that have been developing a long time
When did Enron go bankrupt?
2001
How many years was Skilling sentenced to prison?
14 years
“principal is unsure as to whether the agent has performed their work to their ability”
What is moral hazard?
What was one of the major ways Fastow kept Enron’s financial lies a secret?
Complex financial systems and SPEs
How do the fundamental issues of corporate ownership and control allow for WWC like Enron?
By allowing separation within the corporation
When was Enron founded?
1985
Who died before their sentencing?