Enron: a Fraud Example What Were the Failures That Allowed

question 19

Essay

Enron: A Fraud Example What were the failures that allowed the Enron fraud to occur?

---

Definitions:

Closely Held Corporation

A closely held corporation is a type of company characterized by a small number of shareholders, typically involving family or close associates, with restrictions on the sale or transfer of shares.

Publicly Held Corporation

A company whose shares are publicly traded on stock exchanges, allowing public investors to buy and sell its stock.

Preferential Rights

Rights that give certain stakeholders in a company, such as shareholders or creditors, priority over others in specific situations, like asset distribution.

Liquidation

The process of closing a business and distributing its assets to claimants, often involving selling off assets to pay off creditors and then returning any remaining assets to the shareholders.