Show:
Timeline
Skillings
Culture
Ethical Issues
100

In what year was Enron created?

1985

100

What was Skillings indicted for in his part on the corporate scandal as CEO?

Falsifying books and records 

Insider trading

Corporate self-dealing

100
True or False

Skillings created a culture of perform or get out

True

100

How did Auditors pass Enron's books?

Enron paid off the auditors

200

In what year did Enron start trading natural gas commodities? 

1989

200

Skillings earned an MBA from what business school?

Harvard Business School

200

What was Enron's number one priority?

Profits
200

Enron conducted a new type of accounting: Mark to Market accounting.  What is Mark to Market accounting?

Recognizing revenue when you have no revenue. Project long-term earnings by putting whatever number you want in the earnings column

300

In what year did Enron go bankrupt?

2001

300
What does Skillings do prior to resigning as CEO in 2000 when Enron stocks are at and all time high at $90 a share?

Sells millions of dollars of stocks he knows that are useless based on cooked books.

300

Employees that brought bad news were admonished and discounted.  What did this dynamic create?

Groupthink

300

How did Enron hide debt?

They set-up side companies and hid the debt.