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Enron, a Houston-Based Energy Firm, Was Forced to Cease Its

Question 1

Multiple Choice

Enron, a Houston-based energy firm, was forced to cease its business in the wake of an accounting scandal. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that


A) Enron could charge whatever price it wanted to for energy.
B) there was lack of any competition so Enron was the winner.
C) there is a competitive market in energy distribution in the U.S.
D) the accounting profession needs to review its policies quickly.

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