The 2001 collapse of Enron resulted in the loss of jobs for over 20,000 employees.Arthur Anderson was also impacted by the Enron collapse and 30,000 employees lost their jobs.Why was Arthur Anderson so adversely affected by Enron's collapse?
A) Enron was a major client and Arthur Anderson could not survive the business downturn from the bankruptcy.
B) The firm was an accomplice in the accounting scandal at Enron.
C) Arthur Anderson was the target of a hostile takeover directly after Enron's collapse.
D) The accounting firm decided to get out of the entire energy sector as a result of the collapse of Enron.

Question

Quizplus · Accepted Answer

Anderson's reputation could not recover from the actions of a few who worked closely with Enron to advise them on illegal accounting practices.

The 2001 Collapse of Enron Resulted in the Loss of Jobs