In 1992,the Enron Development Corporation,a Subsidiary of the Houston-Based Energy

question 58

Multiple Choice

In 1992,the Enron Development Corporation,a subsidiary of the Houston-based energy company,signed a contract to build the largest-ever power plant in India,requiring a total investment of $2.8 billion.After Enron had spent nearly $300 million,the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built.Which of the following is true?

• A)Upon the news release of the project cancellation, Enron's share price fell immediately by about 10 percent.
• B)In the process of structuring the deal, Enron made a profound political miscalculation: Instead of waiting for the next election results, Enron rushed to close the deal and began construction, apparently believing that a new government would find it difficult to unwind the deal when construction was already under way.
• C)Enron had the last laugh, however when they went bankrupt and left the power plant unfinished.
• D)All of the above

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Theory

A coherent group of propositions formulated to explain a group of facts or phenomena in the natural world and repeatedly confirmed through experiment or observation.

Accommodation

In cognitive development, the process by which individuals adjust their schemas to incorporate new information.

Assimilation

The process by which an individual or group becomes part of another culture, adopting its values and practices.

Value of a Dime

The monetary worth of a ten-cent coin in the United States currency.