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1. Explain the concept and rationale behind mark to market accounting and it's significance to Enron.

Mark to market accounting allowed Enron to book potential profits on the day it was signed. Regardless of how little cash came through the doors. To the outside world, Enron’s profit was whatever Enron said it was.

2. Describe the Enron culture.

The work environment of Enron was aggressive. This was due to Jeff Skilling’s strong belief in survival of the fittest. Skillings implemented a performance review committee (PRC), where employees were graded from a 1-5. Skillings believed that roughly 10% of people had to be a 5, which meant that they had to be fired. The traders of the company were the most aggressive. One of the speaker said that if he was on his way to his boss’s office to discuss compensation, he would stomp or crush someone else’s throat if that meant his compensation would double.

The Enron culture looked up to Jeff Skillings. One part of the film stated that when Skillings got Lasik, everyone got Lasik, indicating that Skillings was a figure to replicate.

3. What is Andy Fastow's significance to Enron?

Andy Fastow was the CFO of Enron. The documentary described Fastow’s job as covering up the fact that Enron was becoming a “fantasy land.” Fastow had to report profits despite the fact the Enron was billions of dollars in debt. He hid debts in companies where investors couldn’t see it. Many of the companies had exotic names. One of the companies that Fastow created called LJM, allowed him to stash money for himself.

4. What is Sherron Watkins significance to Enron?

Sherron Watkins was the vice president of Enron. She warned Ken Lay that due to accounting irregularities within the company accounting scandals might implode.

5. Why did Wall Street wait until the collapse of Enron to investigate the company? Was there a

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