How Many Off-The-Book Entities Had Enron Created

question 140

Multiple Choice

How many off-the-book entities had Enron created?

• A) 125
• B) 452
• C) 1200
• D) 3000

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Definitions:

Legal Entity

A legal entity is an organization that has legal rights and obligations, including the ability to enter into contracts and loans, sue and be sued, and is required to pay taxes.

Authorized Stock

The upper limit of shares a corporation is allowed to issue, according to its founding documents.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.