Which of the Following Was Not a Flaw Found in LJM1

question 1

Multiple Choice

Which of the following was not a flaw found in LJM1 arrangements?

• A)Profits were improperly recorded on treasury shares used or sheltered by non-existing hedges
• B)Enron was hiding employee stock option expense
• C)Enron was hedging itself
• D)Enron had to advance treasury shares to buy them back at preferential rates
• E)Enron officers and their helpers benefited

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Definitions:

Consolidation

Consolidation is the process of combining multiple financial statements from different subsidiaries or related companies into a single financial statement of the parent company.

Return

The financial outcome of an investment over an agreed-upon time, stated as a portion of the investment's cost price.

Telecom Services

Services provided by companies that enable communication over distances via telephone, internet, cable, and broadcasting.

Money Center Banks

Large financial institutions that offer a wide range of financial services and are typically located in major economic centers.