The Fate of Enron in 2001 Highlights

question 19

Multiple Choice

The fate of Enron in 2001 highlights

• A) The difficulty of making a voting machine that will function in Florida humidity.
• B) The Pentagon's wisdom in building a new high-tech military.
• C) The risk of obsession with soaring profits, fat bonuses, and ever-rising stock prices.
• D) The reasons why so many Americans are suspicious of health maintenance organizations.
• E) None of these choices

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Definitions:

Accounts Receivable

Liabilities of customers to a firm for items or services supplied, pending payment.

Economic Conditions

The state of an economy at a given time, influenced by factors like GDP, unemployment rates, inflation, and government policies.

DSO

Stands for Days Sales Outstanding, a measure of the average number of days that a company takes to collect payment after a sale has been made.

Lockbox Plan

A banking service provided to companies for the receipt of payment from customers, utilizing a special address where payments are collected and processed quickly.