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While several firms distributed assets to SPEs, Enron abused the observe by making use of SPEs as dump web pages for its troubled belongings.
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Downfall and individual bankruptcy: Given that the boom yrs ended and Enron faced elevated Opposition within the Vitality buying and selling small business, the organization’s profits shrank fast. Stressed from shareholders, business executives began to depend upon doubtful accounting techniques, such as a way called “mark-to-market accounting,” to cover the problems.
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