Enron

High school (ages 12+)
History & Culture

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/enron

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the company origin?Formed in 1985 via the merger of Houston Natural Gas and InterNorth
2. What is the peak annual revenue (2000)?Approximately $101 billion
3. Why did Enron suddenly go bankrupt?Enron used secret companies to hide its debts and make its earnings look higher than they were. When people found out, its stock fell and it filed for bankruptcy in 2001.
4. How did Enron trick investors and auditors?Enron created Special Purpose Entities that took on its bad assets and debts. This made the company look healthy, but it was actually very risky.

Deregulation: The reduction or removal of government rules and regulations that control businesses.
Financial Engineering: The use of complex financial instruments and strategies to achieve specific financial outcomes, sometimes deceptively.
Corporate Malfeasance: Wrongful or illegal behavior by a company or its executives, often involving fraud or deception.