The Best Way to Characterize the Role of Sherron Watkins

question 65

Multiple Choice

The best way to characterize the role of Sherron Watkins in the downfall of Enron is:

• A) She directed the internal auditors to examine numerous transactions that led to the discovery of the fraud
• B) She gave in to the pressure of Andy Fastow to go along with materially misstated financial statements
• C) She was sent to jail even though she cooperated with the government in its case against Enron
• D) She tried to alert Ken Lay about the accounting scandal at Enron

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Definitions:

Dismal Science

A nickname for economics, stemming from its predictions and analyses that often focus on the limitations and constraints of economic activities.

Average Workweek

The standard number of hours worked in a week by employees in a particular sector, industry, or economy.

Industrialized Countries

Nations characterized by significant industrial activity, a high level of development, and a strong economy.

Savings Rate

The percentage of disposable income that is set aside as savings instead of being expended on goods and services.