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:

Proletariat

The class of wage-earners in a capitalist society who, having no capital, sell their labor to live.

Bourgeoisie

The class that, in Marxist contexts, owns the means of production in a capitalist society, often opposed to the proletariat class.

Sociology

The study of human society, social behavior, patterns of social relationships, social interaction, and culture that surrounds everyday life.

Objective Reality

A concept referring to the existence of objects, facts, or phenomena independent of human perception and beliefs.