enron scandal

Question 1

What did ENRON start off selling?

Answer 1

natural gas

Question 2

Where was ENRON based?

Answer 2

Houston, Texas

Question 3

Name 3 Primary impacts of the enron scandal.

Answer 3

financial loss, regulation changes, loss of trust and reputation

Question 4

Who suffered financial loss from the enron scandal?

Answer 4

investors and employees

Question 5

Name an example of a regulatory change implemented due to the ENRON scandal.

Answer 5

sarbanes-oxley act

Question 6

What did the Sarbanes-Oxley Act achieve?

Answer 6

improved corporate governance and acounting practices

Question 7

How did the ENRON scandal affect other businesses?

Answer 7

the scandal caused mistrust in corporations and financial institutions

Question 8

How did the ENRON scandal affect other businesses?

Answer 8

the scandal caused mistrust in corporations and financial institutions

Question 9

What did the ENRON scandal highlight?

Answer 9

the importance of transparency and ethical behaviour in business.

Question 10

Who was Bethany McLean?

Answer 10

the first journalist to question ENRONs stock price

Question 11

What was Bethany McLeans book called?

Answer 11

The smartest guys in the room: =the amazing rise and scandalous fall of ENRON

Question 12

What was Bethany McLeans article called?

Answer 12

is ENRON overpriced?

Question 13

Who was Kenneth Lay?

Answer 13

The CEO of ENRON

Question 14

What year did Kenneth Lay create ENRON?

Answer 14

1985

Question 15

Who did Kenneth Lay have strong political connections with?

Answer 15

George W Bush + the Bush family

Question 16

Who was Jeffery Skilling?

Answer 16

he was COO of ENRON before stepping up as CEO when Lay stepped down

Question 17

Why did Kenneth Lay step down as CEO?

Answer 17

personal reasons and the company’s changing leadership structure.

Question 18

What was the main crime that Lay and Skilling committed?

Answer 18

conspiracy and fraud

Question 19

What is conspiracy?

Answer 19

an agreement between two or more people involving a criminal offence

Question 20

What is fraud?

Answer 20

wrongful/ criminal deception resulting in personal or financial gain

Question 21

What is fraud?

Answer 21

wrongful/ criminal deception resulting in personal or financial gain

Question 22

how many accounts of conspiracy and fraud was Kenneth Lay found guilty of?

Answer 22

6

Question 23

how many accounts of conspiracy and fraud was Jeffery Skilling found guilty of?

Answer 23

19

Question 24

What did Kenneth Lay use his political connections for?

Answer 24

He asked GW Bush to sign a legislation that removed restrictions on the states electrical markets

Question 25

What role did Kenneth Lay give to Jeffery Skilling?

Answer 25

chairman and and COO, CEO when Lay stepped down.

Question 26

Why did Kenneth Lay hire Jeffery Skilling?

Answer 26

they worked together 1987, Skilling helped ENRON create a forward market which impressed Lay

Question 27

How many years did Jeffery Skilling get sentenced to originally?

Answer 27

24 years

Question 28

What did Jeffery Skillings 24 year sentence get reduced to and why?

Answer 28

14 years as part of a court agreement

Question 29

How much was Jeffery Skilling fined?

Answer 29

45 million

Question 30

Why didn’t Kenneth Lay make it to court to be sentenced?

Answer 30

He had a heart attack while on holiday in Colorado

Question 31

When did Kenneth Lay die?

Answer 31

6th July 2006

Question 32

What company was ENRON?

Answer 32

energy trading and utility company

Question 33

How much money was ENRON worth?

Answer 33

60 billion