Enron Executives Were Charged with Numerous Counts of Corporate Fraud

question 79

Multiple Choice

Enron executives were charged with numerous counts of corporate fraud and corruption. Among the charges was insider trading, which involves the trading of a corporation's stock by insiders who may have access to information that the public does not. Which role is the government playing when it makes insider trading illegal?

• A) Providing for public goods
• B) Promoting effective and workable competition
• C) Correcting for externalities
• D) Adjusting for undesirable market results

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Definitions:

Chronic Incontinence

A long-term inability to control urination or defecation.

Emotional Responses

The complex psychological and physiological reactions to specific stimuli that reflect feelings such as happiness, anger, sadness, or fear.

Prolonged Hospitalization

An extended period of stay in a hospital beyond the expected duration due to various medical reasons.

Personal Mementos

Objects kept as a reminder of a person, place, or event, holding sentimental value to the owner.