Many Current and Retired Enron Corp

question 29

Multiple Choice

Many current and retired Enron Corp. employees had their 401k retirement accounts wiped out when Enron collapsed because ________.

• A) they had to pay huge fines for obstruction of justice
• B) their 401k accounts were held outside the company
• C) their 401k accounts were not well diversified
• D) none of these options

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Definitions:

Interrelationship

Interrelationship refers to the way in which two or more concepts, objects, or people are connected and affect each other.

Balance Sheet

A record that provides an overview of a company's assets, the liabilities it carries, and shareholder equity, focused on a precise date.

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders after debts and liabilities have been settled.

Common Stock

Shares representing ownership in a company, entitling holders to vote at shareholder meetings and receive dividends.