When the Enron Corporation Went Bankrupt in 2001, This Collapse

question 415

Multiple Choice

When the Enron Corporation went bankrupt in 2001, this collapse was the largest corporate failure in history and the name has since become synonymous with corporate fraud. Enron's board of directors failed to monitor, question, or analyze the company's management and business practices, and billions of dollars' worth of unscrupulous activities were conducted to make Enron look more financially stable than it was. Though the board had access to evidence that something was wrong with Enron's business practices, a culture had developed in which conformity was encouraged and diverse views not acceptable. In other words, Enron fell prey to

• A)social facilitation.
• B)group polarization.
• C)social loafing.
• D)groupthink.
• E)the fundamental attribution error.

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Definitions:

Attachment Disorder

A condition in which individuals have difficulty forming lasting emotional bonds with others, often stemming from early childhood experiences.

Personality Disorder Trait Specified

Involves individual characteristics that deviate markedly from the expectations of the individual's culture, are pervasive and inflexible, have an onset in adolescence or early adulthood, are stable over time, and lead to distress or impairment.

Manipulativeness

A behavior trait characterized by a tendency to influence or control others for self-serving purposes.

Sexual Promiscuity

Engaging in sexual activities with multiple partners without commitment or in a casual manner.