Enron Used Special-Purpose Entities To

question 2

Multiple Choice

Enron used special-purpose entities to:

• A) Keep large amounts of debt off of its balance sheet
• B) Create the appearance of activities that fooled inspectors
• C) Distort its reported Accounts Receivable
• D) Avoid the use of accelerated depreciation on assets for which this method was required to be applied

Understand the dynamics and challenges of family members entering a family business.

Analyze major considerations in assessing the financial condition of an existing business.

Understand the nature of goodwill as an intangible asset.

Understand the definition and roles of the franchisor and franchisee.

---

Definitions:

Patent

A legal document granting an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period of time.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Typeset

A method or process of setting text for printing.