In 2000, American Energy, Commodities, and Services Company Enron Repeatedly

question 43

Multiple Choice

In 2000, American energy, commodities, and services company Enron repeatedly told investors to buy additional Enron stock or hold onto their existing shares. During this time, company executives were aware of hidden losses that were not known by the public and sold their shares of the company. Which of the following best describes Enron's actions during this time?

• A) Enron had a conflict of interest in that it gave investors information to help them earn more money.
• B) Enron lacked transparency in that it did not provide accurate financial information to customers and investors.
• C) Enron did not act in a socially responsible way.
• D) Enron competed fairly and honestly because it did not break any laws or regulations.