Week 2 ACC 260 Assignment

Enron

Question 1: The segment of Enron's operations that got it into difficulties was its SPE's. Enron used these Special Purpose Entities to hide it true financial condition.

Question 3: Enron's entire board of directors did not understand how profits were being made in the SPE's. Andrew Fastow proposed that he be appointed to manage one of the SPE's temporarily until an outside investor could be found. When lawyers advised against this, Michael Kopper was appointed. It was known by only one board member, Jeffery K. Skilling, that Kopper was an employee of Fastow's at Enron. Skillings himself was directly involved in some of the questionable practices at Enron and subsequently resigned. Other executives claimed loss of memory, ignorance, or the Fifth...