When Enron First Proposed Its Off-The-Book Entities, David Duncan Clearly

question 249

Essay

When Enron first proposed its off-the-book entities, David Duncan clearly had concerns. Discuss what he did about those concerns.

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Definitions:

Interest Rate

The price, shown in the form of a percentage of the principal, charged by lenders to borrowers for asset employment.

Diversify

The attempt to spread investment risk by selecting a variety of investment options within a portfolio.

Adage

A short, pointed and memorable saying that expresses a truth or insight.

Private Saving

The portion of an individual's or household's income that is not spent on consumption or taxes and is instead set aside for future use.