Which of the Following Was the Result in Inre Enron

question 32

Multiple Choice

Which of the following was the result in Inre Enron Corp. ,the bankruptcy case in the text involving whether Enterprise Products Operating L.P.was entitled to a lien for unpaid invoices in connection with engineering services provided to Enron?

• A)The court found that a lien was foreclosed because the bankruptcy trustee had priority.
• B)The court found that a lien was available because the claimant qualified as a materialman engaged in manufacturing an article for the debtor thereby satisfying applicable law.
• C)The court found that a lien was available because under principles of equity,it would be unjust to deny the claimant a recovery.
• D)The court found that a lien was foreclosed because the claimant did not qualify as a mechanic,artisan,or materialman.
• E)The court found that a lien was foreclosed because the transaction did not involve the manufacturing or repairing of an "article" or "building" as required under applicable law.

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Definitions:

Indirect Statement

A financial statement method typically used in cash flow statements to adjust net income for changes in non-cash accounts.

Operating Activities Section

A part of the cash flow statement that shows the cash inflows and outflows resulting from the company's primary business activities.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and signifies a claim on part of the corporation's assets and earnings.

Operating Activities

The day-to-day activities of a company involved in producing and selling its products or providing services, which generate most of the company's cashflows.