The Enron Scandal Featured

question 19

Multiple Choice

The Enron scandal featured

• A)a crude oil ship, the Valdez, that ran aground.
• B)a company that falsified its accounts from top to bottom of its main financial statements.
• C)a rogue trader who bankrupted his firm.
• D)a financier who stole money from rich clients including Hollywood stars, politicians and a wealthy dog.

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Definitions:

Limited Liability Partnership

A partnership where some or all partners have limited liabilities, meaning they are not personally responsible for the debts of the business.

Capital Contributions

Funds or assets contributed to a partnership or corporation by its owners or partners to support its operations or finance its objectives.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm or damage to another.