Enron Corporation was a darling in the energy provider arena, and in January 2001 its stock price

Enron Corporation was a darling in the energy-provider arena, and in January 2001 its stock price rose above $100 per share. A collapse of investor confidence in 2001 and revelations of accounting irregularities led to one of the largest bankruptcies in U.S. history. By the end of the year, Enron’s stock price had plummeted to less than $1 per share. Investigations and lawsuits followed. One problem area concerned transactions with related parties that were not adequately disclosed in the comp...