Of the Following,which Is NOT True of the Enron Financial

question 2

Multiple Choice

Of the following,which is NOT true of the Enron financial scandal?

• A) It was a key event leading the U.S.Congress to pass the Sarbanes-Oxley Act of 2002.
• B) The scandal surprised no one because Enron was always regarded as an unethical company.
• C) In 2000,corporate revenues exceeded $100 billion.
• D) The company's former president,Jeffrey Skilling,led Enron to abuse an accounting practice known as mark to market accounting.
• E) The truth about Enron was revealed in 2001.

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Definitions:

Profit-Maximizing

This is the process by which a firm decides on the price and output level that returns the maximum profit.

Short-Run Monopoly

A situation where one company dominates the market for a certain product or service temporarily, often before new entrants arrive.

Short Run

A time period in which at least one input, typically capital, is fixed, affecting the firm's capacity to adjust to changes in demand or production.

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods or services to be offered for consumption or use by others.