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:

Consolidation

The process of combining two or more companies into a single entity to enhance competitive strength and efficiency.

Merger

The combination of two or more companies into a single entity, with the aim of achieving greater efficiencies or market share.

Acquiring Firms

Companies that purchase other companies in mergers and acquisitions to grow in size, diversify, or achieve other strategic goals.

Spin-Off

The distribution of shares in a subsidiary to existing parent company shareholders.