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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?


Definitions:

Decentralization

Refers to distributing the decision-making powers and leadership roles away from a central authority to more local or individual levels within an organization.

Authority

A capability to prescribe actions, make choices, and insist on obedience.

Organizational Design Decisions

Pertain to the process of shaping an organization's structure and roles to align with business goals, strategies, and processes.

Functional Design

The process of creating products, systems, or structures with a focus on optimal functionality.

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