Which of the Following Was Not True According to the Enron

question 50

Multiple Choice

Which of the following was not true according to the Enron case?

• A) Fastow developed the concept of buying up oil and gas companies to establish SPEs
• B) Fastow worked to structure ventures that met the conditions under GAAP to keep the partnership activities off Enron's books and on the separate books of the partnership
• C) Fastow created SPEs that borrowed money from banks and transferred it to Enron in a sale of an operating asset no longer need by Enron
• D) The SPE created by Fastow enabled Enron to keep debt off its books while benefiting from transfer and use of the cash borrowed by the SPE

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Definitions:

Mosaicism

A condition in which an individual has cells of different genetic makeup, which can result from a mutation occurring after fertilization.

Dyslexia

A learning disorder characterized by difficulty reading due to problems identifying speech sounds and learning how they relate to letters and words.

Reading Proficiency

The ability to read text, understand its meaning, and integrate what has been read with existing knowledge.

General Intelligence

A theoretical measure of an individual's overall mental capability to understand complex ideas, adapt effectively to the environment, learn from experience, engage in various forms of reasoning, and overcome obstacles by taking thought.