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Transferring These property to SPEs meant which they ended up held off Enron’s publications, generating its losses search a lot less serious than they definitely had been.
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Downfall and bankruptcy: Because the growth yrs finished and Enron faced amplified Level of competition during the Vitality buying and selling business enterprise, the corporate’s revenue shrank swiftly. Under pressure from shareholders, organization executives began to count on dubious accounting procedures, like a way referred to as “mark-to-current market accounting,” to hide the difficulties.
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