Question 1

The Federal National Mortgage Association (FNMA) is commonly known as ________________ Mae.

Accepted Answer

Fannie

Question 2

What part did Wall Street, with its stockbrokers, investment advisors, and stock analysts, play in the Enron debacle?

Accepted Answer

Wall Street has a hard time admitting when it does not understand something. Enron also generated enormous fees for investment bankers, which was hardly conducive to asking questions, let alone tough ones.

Question 3

Enron's limited partnerships were all of the following except:

Accepted Answer

A) a way to raise money. 
B) a tool permitting insiders to reap huge profits. 
C) used to conceal colossal debt. 
D) a mechanism to limit employee losses. 
A) a way to raise money. 
B) a tool permitting insiders to reap huge profits. 
C) used to conceal colossal debt. 
D) a mechanism to limit employee losses. D

Question 4

Dennis Kozlowski was the CEO behind Adelphia at the time the company filed for bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

Enron limited partnerships were named after all of the following except:

Accepted Answer

A) Jurassic Park characters. 
B) birds. 
C) Star Wars characters. 
D) constellations. 
A) Jurassic Park characters. 
B) birds. 
C) Star Wars characters. 
D) constellations.

Question 6

The deregulation of the energy market in the mid-1990s provided a golden opportunity for Enron.

Accepted Answer

A) True 
 B)False

Question 7

Enron, the seventh-largest corporation in the United States, lost __________ % of its value in a matter of months.

Accepted Answer

A) 85 
B) 60 
C) 99 
D) 50 
A) 85 
B) 60 
C) 99 
D) 50

Question 8

The ________________ press, hypnotized by Enron's success, missed a critical wake-up call with the resignation of Jeff Skilling.

Accepted Answer

The answer of The ________________ press, hypnotized by Enron's success,...

Question 9

Match between columns
                        Premises: Fannie Mae
Refco
Kenenth Lay
Arthur Andersen
Andrew Fastow
Enron
Jeff Skiling
WorldCom

Accepted Answer

The Answer of A financial services company known as a is...

Question 10

Arthur Andersen demonstrated its culpability when it suddenly:

Accepted Answer

A) withdrew from Enron representation. 
B) proposed revising the annual report. 
C) became concerned about conflict of interest policy. 
D) paid an unusual amount of attention to its document retention policy. 
A) withdrew from Enron representation. 
B) proposed revising the annual report. 
C) became concerned about conflict of interest policy. 
D) paid an unusual amount of attention to its document retention policy.

Question 11

Post mortems of the Enron collapse have targeted the "Casablanca maneuver" by members of the Enron board of directors. What does this reference mean?

Accepted Answer

A) Distancing themselves by being unavailable for questioning 
B) Secretly furnishing information to the government 
C) Pointing an accusatory finger at everyone but themselves 
D) Denying any knowledge of questionable activity despite damming evidence 
A) Distancing themselves by being unavailable for questioning 
B) Secretly furnishing information to the government 
C) Pointing an accusatory finger at everyone but themselves 
D) Denying any knowledge of questionable activity despite damming evidence

Question 12

WorldCom has cooked its books by __________. The net effect of this was to make a huge loss look like a sizeable profit.

Accepted Answer

A) classifying ordinary expenses as capital expenditures 
B) misrepresenting bonuses paid to Ebbers and others 
C) maintaining two set of books-one with real expenses and cash flow and the other with false numbers 
D) exaggerating cash flow 
A) classifying ordinary expenses as capital expenditures 
B) misrepresenting bonuses paid to Ebbers and others 
C) maintaining two set of books-one with real expenses and cash flow and the other with false numbers 
D) exaggerating cash flow

Question 13

Lay's paying back loans with questionable assets accomplished with of the following besides putting money in his bank account?

Accepted Answer

A) Avoided alerting regulators 
B) Took advantage of his co-conspirators 
C) Was a last-ditch effort to improve the company's bottom line 
D) Avoided substantial tax consequences 
A) Avoided alerting regulators 
B) Took advantage of his co-conspirators 
C) Was a last-ditch effort to improve the company's bottom line 
D) Avoided substantial tax consequences

Question 14

Skilling's resignation happened in conjunction with an energy crisis in what area?

Accepted Answer

A) California 
B) The Southwest United States 
C) Texas 
D) The Northeast United States 
A) California 
B) The Southwest United States 
C) Texas 
D) The Northeast United States

Question 15

Ken Lay borrowed $70 million from the company after losses were announced and paid back the money with MCI stock.

Accepted Answer

A) True 
 B)False

Question 16

Lay told securities analyst that the major loss was caused by:

Accepted Answer

A) an accounting error. 
B) downturn in the energy market. 
C) employee embezzlement. 
D) bad investments. 
A) an accounting error. 
B) downturn in the energy market. 
C) employee embezzlement. 
D) bad investments.

Question 17

Enron experienced the beginning of the end with major losses in the third quarter of 2001.The company had to explain a __________ loss to corporate credit-rating agencies.

Accepted Answer

A) $250 million 
B) $638 million 
C) $1 billion 
D) $2 billion 
A) $250 million 
B) $638 million 
C) $1 billion 
D) $2 billion

Question 18

Lost shareholder equity for ________________ was estimated at $63 billion.

Accepted Answer

The answer of Lost shareholder equity for ________________ was estimated...

Question 19

Ken Lay, in an apparent move toward self-preservation, borrowed $70 million from the company after losses were announced and paid back the money with:

Accepted Answer

A) partnership interests. 
B) Enron stock. 
C) his wife's real estate holdings purchased with money she received from Enron. 
D) money he had already stolen. 
A) partnership interests. 
B) Enron stock. 
C) his wife's real estate holdings purchased with money she received from Enron. 
D) money he had already stolen.

Question 20

An Enron executive would eventually plead guilty to price manipulation related to the energy crisis referenced previously. The following are all elements of Enron machinations in the energy crisis except:

Accepted Answer

A) selling the same store of emergency power to three different communities. 
B) selling nonexistent emergency back-up power. 
C) using false energy schedules to create appearance of congestion. 
D) payments to Enron for easing fake congestion. 
A) selling the same store of emergency power to three different communities. 
B) selling nonexistent emergency back-up power. 
C) using false energy schedules to create appearance of congestion. 
D) payments to Enron for easing fake congestion.

The Federal National Mortgage Association (FNMA) is commonly known as ________________ Mae.

What part did Wall Street, with its stockbrokers, investment advisors, and stock analysts, play in the Enron debacle?

Enron's limited partnerships were all of the following except:

Dennis Kozlowski was the CEO behind Adelphia at the time the company filed for bankruptcy.

Enron limited partnerships were named after all of the following except:

The deregulation of the energy market in the mid-1990s provided a golden opportunity for Enron.

Enron, the seventh-largest corporation in the United States, lost __________ % of its value in a matter of months.

The ________________ press, hypnotized by Enron's success, missed a critical wake-up call with the resignation of Jeff Skilling.

Arthur Andersen demonstrated its culpability when it suddenly:

Post mortems of the Enron collapse have targeted the "Casablanca maneuver" by members of the Enron board of directors. What does this reference mean?

WorldCom has cooked its books by __________. The net effect of this was to make a huge loss look like a sizeable profit.

Lay's paying back loans with questionable assets accomplished with of the following besides putting money in his bank account?

Skilling's resignation happened in conjunction with an energy crisis in what area?

Ken Lay borrowed $70 million from the company after losses were announced and paid back the money with MCI stock.

Lay told securities analyst that the major loss was caused by:

Enron experienced the beginning of the end with major losses in the third quarter of 2001.The company had to explain a __________ loss to corporate credit-rating agencies.

Lost shareholder equity for ________________ was estimated at $63 billion.

Ken Lay, in an apparent move toward self-preservation, borrowed $70 million from the company after losses were announced and paid back the money with:

An Enron executive would eventually plead guilty to price manipulation related to the energy crisis referenced previously. The following are all elements of Enron machinations in the energy crisis except:

Introduction

Crimes Against Consumers

Unsafe Products

Environmental Crime

Institutional Corruption: Mass Media and Religion

Securities Fraud

Fiduciary Fraud

Crimes by the Government

Corruption of Public Officials

Medical Crime

Computer Crime

Conclusions

Filters

Exam 7: Corporate Fraud

The Federal National Mortgage Association (FNMA) is commonly known as ________________ Mae.

What part did Wall Street, with its stockbrokers, investment advisors, and stock analysts, play in the Enron debacle?

Enron's limited partnerships were all of the following except:

Dennis Kozlowski was the CEO behind Adelphia at the time the company filed for bankruptcy.

Enron limited partnerships were named after all of the following except:

The deregulation of the energy market in the mid-1990s provided a golden opportunity for Enron.

Enron, the seventh-largest corporation in the United States, lost __________ % of its value in a matter of months.

The ________________ press, hypnotized by Enron's success, missed a critical wake-up call with the resignation of Jeff Skilling.

Arthur Andersen demonstrated its culpability when it suddenly:

Post mortems of the Enron collapse have targeted the "Casablanca maneuver" by members of the Enron board of directors. What does this reference mean?

WorldCom has cooked its books by __________. The net effect of this was to make a huge loss look like a sizeable profit.

Lay's paying back loans with questionable assets accomplished with of the following besides putting money in his bank account?

Skilling's resignation happened in conjunction with an energy crisis in what area?

Ken Lay borrowed $70 million from the company after losses were announced and paid back the money with MCI stock.

Lay told securities analyst that the major loss was caused by:

Enron experienced the beginning of the end with major losses in the third quarter of 2001.The company had to explain a __________ loss to corporate credit-rating agencies.

Lost shareholder equity for ________________ was estimated at $63 billion.

Ken Lay, in an apparent move toward self-preservation, borrowed $70 million from the company after losses were announced and paid back the money with:

An Enron executive would eventually plead guilty to price manipulation related to the energy crisis referenced previously. The following are all elements of Enron machinations in the energy crisis except:

Introduction

Crimes Against Consumers

Unsafe Products

Environmental Crime

Institutional Corruption: Mass Media and Religion

Securities Fraud

Fiduciary Fraud

Crimes by the Government

Corruption of Public Officials

Medical Crime

Computer Crime

Conclusions

Filters